• The Mexican Peso trades in a range as traders await news of the US presidential election. 
• The winner could have a significant impact on the Peso in the days to come.
• Technically, USD/MXN continues to trade below the opening chart gap it formed when it broke lower on Monday.  

The Mexican Peso (MXN) fluctuates between tepid gains and losses on Tuesday as traders await with bated breath the outcome of the US presidential election, an important driver of the Peso over the coming days. 

If the Democrat nominee Kamala Harris wins, it is expected to be positive for the Peso, whilst if the Republican nominee Donald Trump is victorious, the impact is likely to be negative, according to financial news website El Financiero. The difference is due to Trump’s threat to place tariffs on Mexican imports. 

The highly-esteemed election forecaster 538.com indicates the probability of Vice President Harris winning is 50%, whilst former President Donald Trump has a 49% chance of victory and a 1% chance of no overall winner. Over the last 24 hours, Harris has snuck into the lead after lagging Trump for several days. This may explain the Peso’s strengthening across its main pairs on Monday.