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January 5, 2017 | Mexico Central Bank Intervenes to Prop Up Peso: Trump to Blame for Peso Woes?

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Today the Mexican central bank intervened in the forex markets to prop up the peso, but the action has largely failed.

US Dollar / Mexico Peso 15 Minute Chart

peso-15-minute-2017-01-05

US Dollar / Mexico Peso Monthly Chart

peso-15-minute-2017-01-05a

Don’t Blame Trump

The election of Donald Trump and his anti-NAFTA message hasn’t helped Mexico, but the peso has been in a long slide for years.

Mexico oil export revenues plunged with falling oil prices. Mexico is heavily dependent on oil tax revenue.

Mike “Mish” Shedlock

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January 5th, 2017

Posted In: Mish Talk

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