Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
USD/MXN Climbs After Airport Project for Mexico City is Scrapped

USD/MXN Climbs After Airport Project for Mexico City is Scrapped

Peter Hanks, Strategist

Talking Points:

  • President elect Lopez Obrador cancelled plans for the $13.3 billion project that was already one third complete
  • The cancellation will reportedly cost $5 billion but favor a less-ambitious renovation project to an already existing airport
  • The Peso fell 3.80% on the news while the Mexican equity market shed 4.20%
  • Read more about the cancellation in Spanish here.

Mexican President elect Andres Manuel Lopez Obrador, commonly referred to as AMLO, announced his decision to cancel the construction of the New Mexico City International Airport (NAIM) on Monday. The decision came after four days of public consultation in which citizens voted in favor of the President elect’s proposal to cancel the project and instead renovate an existing airport.

Join our analysts for Live Webinars that range from live coverage of central bank decisions and economic data breakdowns to trading Q&A’s.

The decision to cancel construction has rattled many of Mexico’s business leaders and drawn harsh criticism from others. Juan Pablo Castanon, President of Mexico’s leading business chamber said the decision “sends a message of uncertainty to international markets, investors and all the citizens.”

USD/MXN Price Chart 10-Minute, October 26th – October 29th

USD/MXN price chart mexico city airport cancelled

However, international markets were quite certain of one thing Monday as the peso traded decidedly lower. The USD/MXN pair climbed 3.46% to 20.0555 and notably crossed 20, an important psychological level.

S&P/BVM IPC Price Chart 10-Minute, October 29th

Mexican stock market airport cancelled

Similarly, the Mexican index S&P/BVM IPC shed 4.20% as investors expressed concern over the incoming administration’s attitude toward business and subsequently cut exposure.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Friday’s Low in SP 500, Dow, and NASDAQ Important to Trend

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES