• The Mexican Peso trades mixed with multiple influences impacting its valuation. 
• The political risk from planned changes to the constitution that critics say will compromise the independence of the judiciary weighs. 
• News of Canadian tariffs on Chinese EVs and Mexican monetary policy support MXN.

The Mexican Peso (MXN) trades mixed on Tuesday during the European session after weakening over one percent in its most-traded pairs on the previous day. 

The Peso is probably gaining mild support after an interview with the Bank of Mexico (Banxico) Deputy Governor Galia Borja, in which she said interest rates might remain higher for longer. The expectation that rates might remain elevated is positive for the Peso as it is likely to increase foreign capital inflows. 

The Mexican Peso may also be gaining relief from the news of Canada’s decision to increase tariffs on Chinese electric vehicle (EV) and steel imports, by 100% and 25%, respectively. This may benefit Mexico in a roundabout way because of its existing role as an intermediary manufacturer of Chinese EVs destined for the North American  market and the free-trade agreement it has with Canada, according to Bloomberg News