Peso Selloff Pauses As Mexican President Addresses US, Canada Relations, Targets Ambassadors Over 'Respect For Our Country'
Portfolio Pulse from Piero Cingari
The Mexican peso gained 0.5% against the U.S. dollar after President AMLO clarified that diplomatic relations with the U.S. and Canada remain intact, despite a pause with their embassies in Mexico. Concerns persist over AMLO's proposed judicial reform, which could impact Mexico's investment outlook. U.S.-listed ETFs focused on Mexican equities showed mixed performance.
August 28, 2024 | 7:51 pm
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NEUTRAL IMPACT
The iShares MSCI Mexico ETF (EWW) gained 0.1% as the Mexican peso rebounded following AMLO's clarification on diplomatic relations. However, concerns over judicial reform continue to create an uncertain investment outlook.
EWW's performance is directly tied to Mexican equities, which are influenced by the peso's value and political developments. The peso's rebound and AMLO's diplomatic clarification provided a slight positive impact, but ongoing concerns about judicial reform maintain a cautious outlook.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Franklin FTSE Mexico ETF (FLMX) slipped 0.4% despite the peso's rebound, reflecting ongoing investor concerns about Mexico's political and economic stability amid proposed judicial reforms.
FLMX's decline indicates investor apprehension about Mexico's political climate and economic stability, particularly in light of the proposed judicial reforms. The peso's rebound was not enough to offset these concerns, leading to a negative impact on FLMX.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80