Mexican Peso sinks to two-year low after Trump’s victory on US election

Mexican Peso recovers but remains volatile; USD/MXN surged to yearly high of 20.80 before retreating.

Trump’s tariff threats keep Mexican markets on edge; judicial reform ruling threatens the state of law.

Fed's anticipated rate cut may further influence USD/MXN direction in the coming days.

The Mexican Peso recovers some ground against the Greenback after hitting a two-year low. Yet it treads water as investors digest former President Donald Trump’s victory in the US election. At the time of writing, the USD/MXN trades at 20.10, 0.12% above its opening price.

Mexico’s economic docket remained absent, though the day's highlight was the Supreme Court's discussion of Judge Juan Luis González Alcántara Carranca's proposal to invalidate some parts of the judicial reform bill approved by the ruling party, Morena, at the Congress.

The Supreme Court discussed the Gonzalez project and needed at least eight votes for its approval. Nevertheless, seven magistrates voted in favor, and four voted against it. This means the judicial reform approved in September remains in force, and the first election of judges and magistrates will be in June 2025.

Aside from this, the US presidential election overshadowed most news around the financial markets. The Republican candidate, former President Donald Trump, won the 2024 election with at least 277 Electoral College votes and led the red sweep, with the Republicans obtaining the majority in the Senate and possibly in the House of Representatives.