Market Extra: Mexico’s presidential election: Investors need to know these key factors

Sunday’s presidential election will give Mexico a new leader, and with unorthodox candidate Andrés Manuel López Obrador leading in the polls, market participants are preparing for what his administration could mean for Mexican assets and already tense relations with the U.S.

“It would be a huge surprise if there was an upset and AMLO didn’t win,” said Graham Stock, emerging-market sovereign strategist at BlueBay Asset Management, calling the candidate by his acronymic nickname, and expecting calm trading in the Mexican peso USDMXN, +1.0432% come Monday. The peso is a popular emerging market currency play, thanks to the Bank of Mexico’s high overnight interest rate of 7.75%.

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