For investors who think calmer seas await the Mexican peso after the U.S. presidential election, the top forecaster of the currency has some bad news: The next proverbial Donald Trump is just around the corner.
The peso is poised to lose whether or not the Republican candidate makes it to the White House in next month’s vote, says Juan Carlos Rodado, director of Latin America research at Natixis North America and the most-accurate forecaster in the third quarter, according to Bloomberg rankings. Bloomberg reports that Rodado expects the peso, seen as a proxy for global risk aversion, to fall to 20 per dollar by year-end from 18.99 now as investors look beyond the election toward the next big event.
Before Trump, it was Brexit. (The peso tumbled almost 4 percent the day after U.K. voters chose to leave the European Union.) After Trump, any number of shocks could send investors scrambling to short the peso again to hedge their emerging-market portfolios. Troubles at Deutsche Bank, an Italian referendum and the oil market all rank on the list of possible surprises that could undermine global risk appetite, Rodado says.
“Mexico’s currency levels are still determined by global events,” Rodado said from New York. “I see nothing but bearish factors.”
To read complete article click here.
more recommended stories
Cozumel police protest mismanagement of funds by senior officers
Municipal police in Cozumel, Quintana Roo,.
Southwest Airlines to expand cargo business to Mexico
According to CNBC News, the avocado on.
Mérida hotels take measures against Influenza
The hotel and commerce sector of.
CICY scientists develop international biomimetic study on cocoyol fruit’s toughness
The Cocoyol or Coyol (Acrocomia Mexicana).
American tourist killed by stray bullet in Mexico City: ABC News
According to ABC News, an American.
Tour Mexico’s Yucatan Peninsula and explore ancient Maya culture
The archaeological sites of the Maya.
OPINION: AMLO will fight the drug war in a different way
Phillip Smith is a writer, author.
Top 10 things you should know about NABCO Ghana
While NABCO is still a new.
Mérida City Council will take “vulnerable social groups” representatives to visit Logos Hope
MÉRIDA, Yuc.- The City Council of.
Four deaths in Yucatán due to Influenza: State Health Secretariat
After days of waiting to have.