Analysts at Rabobank point out that the Mexican elections will be held on July 1st and will be a key event for the USD/MXN going forward.
Key Quotes
“Lopez Obrador (AMLO) continues to enjoy a sizeable lead according to polls. Anaya of the PAN and Meade of the PRI continue to hold the second and third place respectively.”
“Although historically a poor guide to the final allocation of seats, polls suggest that the MORENA-PES-PT coalition could secure a significant number in both the Lower House and the Senate and a majority cannot be ruled out.”
“Some election risk has been priced into MXN but we see further weakness ahead and expect USD/MXN to trade up to 21.5 in the lead up to the election.”
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