As we come to the end of the primary season, leftist-populist candidate Andr?s Manuel L?pez Obrador (AMLO) remains the frontrunner in Mexico's presidential race, followed by the PAN-led coalition and the ruling PRI's coalition in a tight race. All three coalitions and independent candidates will run on anti-corruption and security policies, with non-establishment candidates likely to have more...
High real yields and significant undervaluation in real effective exchange rate terms underpin our relatively constructive outlook on the Mexican peso. Nevertheless, downside risks to this view stemming from the NAFTA renegotiation and July presidential election remain considerable.
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Thanks, BMI Research