Mexican peso cheers the election result
The reversal in political fortunes in the US is also a reversal of fortunes for Mexico. All the uncertainty from Trump is gone for now and prospects for more US spending will boost demand for Mexican exports.
Technically, today's drop below the December low aligns the technicals with the fundamentals and points squarely at the pre-pandemic lows in what would be a further 5% drop.
Domestically, the pandemic is hitting hard and the country doesn't have the fiscal capacity of developed markets so it will be a slower recovery, but it will come. A rising tide lifts all boats.
