# MXN: Stayin’ alive by hedging Article 2205 – TDS — Octa

> TDS strategist Sacha Tihanyi says the market underprices the risk that the US invokes Article 2205 to signal intent to exit Nafta. He argues Mexican assets would immediately price in the end of Nafta if that happens. He sees USDMXN reaching 22.00 in that scenario.

- Date: 2018-01-10 · published 2018-01-10T12:00:00.000Z
- Category: policy · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/67247-mxn-stayin-alive-by-hedging-article-2205-tds-octa
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

An invocation of Article 2205 would sharply weaken the peso, raising the cost of US-sourced feed and grain for Mexican buyers. It is a key trade-policy risk for North American feed markets.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/528853/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.