📝 Mexican Peso Could Weaken Above 21.0 On A Trump Win: Barclays

Trump’s comments about slapping tariffs on the auto sector warrant further weakness in the peso initially, even if this is ultimately a negotiation tactic. Trump's proposed tariffs on Mexican auto exports could push the peso down about 6%-13%, this would eventually pressure Banco De Mexico to intervene in FX markets, Banxico has previously defended the peso with moves above 10%. See Banco De Mexico policymakers pausing its easing cycle in the case of a Trump win. If Harris wins the U.S. election, the peso would probably trade higher into 18.5 to the dollar. - Barclays Strategy