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Bloomberg analysis explains that the Mexican peso, expected to be the strongest major currency this year, instead collapsed after Trump's election, with hedging flows amplifying the move. Forecasters had seen the peso as grossly undervalued at the start of the year.
The peso's slump reflects heavy hedging and NAFTA uncertainty, which raises Mexican import costs for feed and grain and can curb demand for U.S. exports. The story describes past positioning rather than a new shock.
bloomberg.comJessica Brice, Isabella CotaNov 16, 2016Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
