JPMorgan Says Mexican Peso Vulnerable to ‘Unpredictable’ US Vote
- Bank lowers recommendation on currency to market-weight
- Traders need visibility on US trade policy to assess MXN path
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JPMorgan Chase & Co. cut a long-standing bullish call on the Mexican peso, warning traders should be mindful of risks stemming from a “highly-unpredictable” US presidential election.
The bank downgraded the peso to market-weight from overweight amid potential risks related to the vote that will pit Kamala Harris against Donald Trump next month. Traders are anxious about what will be the next US leader’s approach on topics ranging from tariffs to the upcoming review of the USMCA trade deal.