Mexican peso likely to see further volatility in near-term, says Commerzbank

Mexican peso had depreciated by about 12 percent against the U.S. dollar to 20.80 as a first reaction to Donald Trump’s election victory. Since then, the USD/MXN currency pair corrected to a certain degree, stabilizing to around MXN 20. According to Commerzbank, there is possibility that the Mexican peso would further face volatility in the near-term.

Even if a second plunge is unlikely, the Mexican peso could move down or up quite rapidly, depending on the news flow from the U.S., such as ministerial appointments and remarks by Trump. The future relations between Mexico and the U.S. might become quite clear in early 2017. Until then, there would be uncertain, which in-turn would be bad for the Mexican peso, noted Commerzbank.