📝 Mexican Peso Underperformance Should Be Transitory: Barclays

MXN underperformance should be transitory. The MXN has been under- pressure over the last days, as the selloff in US rates has brought renewed momentum to the big dollar. While the currency underperformed on the news about the airport tariffs, we think this is just noise, and underperformance should be transitory. We believe this news does not have any expropriation connotations or intention to interfere with the good operational and financial performance o= the airport operators. We think that fundamentals for the currency remain constructive, with carry at attractive levels and a very resilient US economy. However, US rates are a more important driver in the near term, and pressures on EMFX could continue if the UST selloff extends further.

- Barclays