It can be said that Stock market and Mexican currency are unstoppable. The Mexican Stock Exchange (BMV) along with the Mexican currency have generating profits in the world, which makes that perspective changes around the world that it was set after January 20th when during Donald Trump’s inauguration day.
The force correlation between Mexico and USA has not been as expected, totally negative during the first quarter of this year, and this was a dimension, according economic and political analysts, that no one had prevented when last January 20th, President Donald Trump took the office of the economy next to Mexico, and which is also the most powerful in the world.
According to what it was explained by Nur Cristiani, the Mexican JP Morgan variable income expert, the base scenario is that United States will not shoot itself in the foot, because Mexico is incredible relevant for the country.
Mexican Peso vs. US Dollar
And all this indicates that it was like that, the White House economy advisors internalized the idea that it was way better to make synergy with its neighbor divided by Grande River, this happened because 8 out of 10 vehicles that an American citizen drives are assembled in the Industrial parks around Puebla. And as well as such product, many more come from the Aztec country.
Apart from that, among other reasons, the Mexican peso, that has been reinforce by the healthy macroeconomic index in the United States, advanced during the first three months around 10% of utilities, set as one of the most profitable Exchange currency of the world, and one of the assets that provided biggest profits. Way behind Mexican peso, we can also see the Russian Ruble, and the South Korean Won, with profits of 8.9% and 8.0%.
According to what Cristiani appointed, the USA rhetorical has been moderated a lot, by recognizing the need for creating a commercial treat that can be mutual beneficial for both countries.
Another non-less important factor were the best macroeconomic indexes, not only the United States employment, consumption, and supply; but the surprising results, according to the experts of the Mexican economy, this is translated into better labor conditions of the aggregate asset, and a noticeable advancement of mineral prices.
On the other hand, James Salazar, who is known by being senior analyst of CIBanco, pointed out that it was the appreciation of Peso vs USD that held Mexican assets markets, explaining that this improvement the BMV performance and this is positive for foreigner investors because they get a higher profit. On one side, through the increment of GPD in Mexican Pesos, and on the other through Exchange effect.
However, according to MetAnalisis Stock Market analysis director, Gerardo Copca, it is recommendable to be cautious. The USD performance above 10% can be cyclical, because there is a forecast that this type of changes starts to depreciate, because of the increasing expectation of the Federal Reserve rate.