FxWirePro Mexican peso likely to decline to 27 per dollar

2016 has been a real nightmare for the Mexican peso. It lost more than 17 percent of its value against the US dollar as the Republican Candidate Donald Trump won the US election, who has fiercely criticized North American free Trade Agreement (NAFTA), considered as a key cornerstone for Mexico’s growth. He has also promised to build a wall along the Mexican border to stop an influx of drugs and criminals and he insisted that Mexico would be paying for the wall. Since his election, he has taken a jab towards auto industry, threatening them with higher tariffs, and the automakers have responded with announcing bigger investments in the United States while abandoning plans in Mexico.

It is clear to everyone that Donald Trump’s presidency is not likely to bear well for the Mexican peso. We, at FxWirePro, suspect that the peso has a long way down.

Trade idea:

Sell Mexican peso against the dollar at the current rate of 21.94 per dollar and at dips with a target around 27.2 per dollar. For the time being, we would keep a larger stop loss around 18.5 area.