Despite a calm Monday so far, it won't last long with the rest of the week packed full of major economic and political events that should ensure markets remain quite volatile.
For anyone looking for significant clues to the future of Fed policy, yesterday’s FOMC statement was a real letdown. The announcement mostly reflects U.S policy makers’ caution in a time of political upheaval. Nevertheless, the Fed indicated that they remain on track to gradually raise short-term interest rates this year.
After pulling out of the Trans-Pacific Partnership, Trump has signaled his desire to renegotiate US participation in the longstanding North American Free Trade Agreement. This only adds to near-term uncertainty for the Mexican Peso. What does this mean for companies with cash flows exposed to the peso?
In the weeks after the U.S. election, Mexico’s peso took a hit over uncertainty about the country’s relationship with key trade partners--especially its northern neighbor. This could be a good time for financial professionals at multinationals exposed to the peso to assess exchange rate risk as it relates to payments and transfer activity. We examine the currency’s recent volatility and offers suggestions to better manage payments in the face of these uncertainties.