Ella 
The Mexican peso (MXN) was range-bound on Tuesday as the post-election sell-off, which saw the currency lose an average of 10% against its major peers, has run out of steam.
Risk appetite remains solid as U.S. stock indexes hit record highs on Monday, led by a rebound in tech stocks, and Asian investors extended the momentum on Tuesday. The tone of risk appetite provides a constructive backdrop for the peso, which tends to perform better when investors’ risk appetite rises.
At the time of writing, $1 buys 18.53 Mexican pesos, the EUR/MXN exchange rate is 19.88, and the GBP/MXN exchange rate is 23.52.
The Mexican peso was range-bound on Tuesday as the bearish squeeze that followed the sharp sell-off on June 2nd elections faded.
Speculators appear to have eased off their push for the peso lower, despite lingering concerns about a slew of constitutional reforms the new left-wing coalition government wants to enact, from raising the minimum wage to judicial reforms.
Analysts at Capital Economics see fair value for the dollar at 19.00 per peso, the high on June 12. Overweight long positions established when the peso climbed to 16.20 in May are now likely to have been completely wiped out.
Incoming President Claudia Sheinbaum sought to reassure investors on Monday, saying “the Mexican economy is healthy and strong and there is nothing to worry about.”
She also cited independent polls commissioned over the weekend that showed her party’s controversial judicial reforms, which market commentators blame for the peso sell-off, enjoy broad popular support.
On the data front, USD/MXN could face volatility after the release of U.S. retail sales data for May. Meanwhile, Mexico’s National Institute of Statistics (INEGI) will release first quarter GDP aggregate demand data.
