While Mexican markets will continue selling off in absolute terms, their recent underperformance versus their EM peers is a temporary setback in a cyclical and structural bull market. Domestic politics are evolving from stable to…
Mexican financial markets have been this year’s stellar outperformers, both in absolute terms and relative to their EM peers. Naturally, the question arises: how sustainable is this rally? According to our Emerging…
The Mexican peso is the best performing major currency so far this year, gaining 14% vis-à-vis the greenback over this period. Even during the latest bout of dollar strength since mid-July, MXN has weakened by the least…
In absolute terms, Mexican markets may correct given their impressive rally and an impending EM risk-off move. Relative to EM however, Mexico will continue to outperform given its unique cyclical and structural macro fundamentals, as…
China’s slowdown confirms BCA’s Geopolitical Strategists’ view that persisting structural challenges would cause China’s economic reopening to disappoint (see The Numbers). In this context, Canada and…
In this short weekly report, we review some of our favorite FX trades.
Mexico is caught between crosscurrents. On the one hand, headline and core inflation are at multi-decade highs. On the other hand, genuine inflationary pressures are subdued, and fiscal and monetary policies are hawkish. Going…
Executive Summary Mexico: Inflation Is At A Two-Decade High Mexican financial markets – stocks, fixed-income and the currency – will continue outperforming their EM counterparts. The Mexican economy is…
Executive Summary Petrocurrencies Have Lagged Terms Of Trade Petrocurrencies have lagged the surge in crude prices. This has been specific to the currency space since energy stocks have been in an epic bull market.Both cyclical and…
The Mexican peso has weakened sharply vis-à-vis the USD over the past three weeks, dropping to its lowest level since early March. It was the second worst performing emerging market currency on Wednesday, falling nearly 1…