Mexican Peso Strengthens On Prospects Of Clinton Victory – Put Options Suggested on USDMXN
Oct, 10th 17:41
USDMXN started the first session of the week with a big gap down on the open. The market opened significantly lower compared to the closing price on Friday.
The Mexican Peso jumped sharply to head even higher than the opening level, after the second presidential debate between Democrat Hillary Clinton and her rival Donald Trump ended. Considering the performance of two nominees in the Sunday night debate, financial markets declared Clinton a winner, which is seen as favorable for the Peso.
The gap down on the open was also a result of the negative sentiment towards the Republican candidate after the release of old interviews where Trump could be heard speaking in a highly objectionable manner about women. The release of the recordings was followed by a sharp backlash against the Republican candidate and the withdrawal of support by many key Republican party figures to the candidate.
The overriding belief developing in the markets is that Hillary Clinton shall come out a winner in the Presidential Election, which is providing relief to the Mexican Peso as Trump has previously made highly charges statements related to the US-Mexico relationship vis-a-vis trade, immigration and social integration.
The currency broke below the 19.00000 level and reached a one-month high versus the U.S dollar at 18.78861.
Buy Digital Put Options from 18.89000 to 18.79000 valid until 20:00 GMT October 11, 2016