Mexican Peso Drops as Threat of US Fiscal Cliff Remains

The Mexican peso weakened today as US politicians did not make progress in the discussion about avoiding fiscal cliff, fueling concerns that the US economy may face a recession.
John Boehner, the Speaker of the United States House of Representatives, said:

Unfortunately, the White House is so unserious about cutting spending that it appears willing to slow-walk our economy right up to â€” and over — the fiscal cliff.

The United States are the biggest trading partner of Mexico, therefore the potential recession seriously undermines prospects for Mexican exports. Yet speculators still remain bullish on the currency, according to the data of the Commodity Futures Trading Commission.
USD/MXN went up from 12.8031 to 12.8170 as of 12:38 GMT today.

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