• Mexican Peso weakens on fears of Trump-imposed tariffs on Mexican imports.
• Banxico expected to cut rates by 25 bps as inflation approaches 3% target.
• Upcoming US and Mexico economic data, including consumer confidence and Banxico decision, may add to Peso’s volatility.

The Mexican Peso is against the ropes versus the Greenback on Friday, with the latter recovering some ground even though the US Federal Reserve (Fed) cut rates on Thursday. Risk aversion sponsored by China’s lack of clarity on its program to stimulate the economy weighed on global equities, while traders continue to digest Trump’s victory for a third day. At the time of writing, the USD/MXN trades at 20.26, up more than 2.39%.

Mexico’s economic docket remains absent on Friday, but there’s some anxiety after Americans elected Donald Trump as their next president. Fears that Trump could impose tariffs on Chinese and Mexican imports, could spark a reacceleration of inflation and disrupt supply chains.

Mexico’s Economy Secretary Marcelo Ebrard commented on Thursday that most of Mexico’s imports from China are made by around 50 companies and most of them are American. “Putting a tariff on those imports will only put those companies in danger, starting with the automotive industry,” Ebrard said.