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Mexican Peso Posts Surprise Gains Before Election

  • Mexico’s peso has gained 3.4 percent over the past five days
  • Shorts are being stopped out ahead of Sunday election day
Mexican Pesos As Currency Stumbles On Stalled Nafta
Photographer: Mauricio Palos/Bloomberg

The long-suffering Mexican peso has finally rallied, posting the largest gain among major currencies over the past five days.

The 3.4 percent move comes ahead of the country’s Sunday election that will likely see a victory by left-leaning firebrand Andres Manuel Lopez Obrador. But a few days before Mexicans head to the polls, investors are exiting short positions and betting on the fact that the market has priced in a Lopez Obrador win.