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In recent months, the Mexico peso has surged with Hillary Clinton’s chances of winning the U.S. presidential election. In a shocking development, since the 25th of October the currency is a whopping 3% lower against the U.S. dollar.
Since Friday’s news that FBI is reopening its investigation into Clinton-related e-mails, the peso tells us far more than any new polls. The currency is telling us she has lost a lot of ground, Trump’s chances are approaching 50%.
U.S. Dollar – Mexican Peso
Higher $ / Peso Below = A Weaker Position vs. the Dollar
A Year Ago 16.5 Peso’s to the U.S. Dollar, Today it’s 19
Since October 25th, ES1 (S&P 500 E-mini Futures Contract) is off 1.7% as the Mexican Peso has weakened. CFTC data show, net-short positions on peso recorded before latest FBI revelations, fell 18% in week to Oct. 25. They reached the lowest since May, but that’s changing fast, shorts are piling in.
Join our Larry McDonald on CNBC’s Trading Nation this Wednesday at 2:30pm ETDon’t miss our next trade idea. Get on the Bear Traps Report Today, click here