MXN expected to lose further ground – BBH

In view of analysts at BBH, the Mexican Peso is expected to remain under pressure, mainly on the US-Mexico political scenario.

Key Quotes

“The Mexican peso remains under pressure and is on track to test the all-time low near 21.60 soon”.

“While we had counselled taking a “wait and see” approach regarding US-Mexico relations under the incoming administration, it is clear that we are already seeing a negative impact on Mexico”.

“Ford said yesterday that it scrapped plans to build a $1.6 bln plant in Mexico after coming under criticism from President-elect Trump.  Instead, the company will invest $700 mln to expand an existing plant in Flat Rock, Michigan, which Ford CEO Fields said would create 700 jobs”.

“With President-elect Trump yet to take office, it is surprising to see corporate decisions being influenced by his comments”.