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Stock impact report

Carry-Trade Favorite Mexican Peso Smacked by Rising Mideast Risk [BNN Bloomberg (Canada)]

JP Morgan Chase & Co. (JPM) 
Last jp morgan chase & co. earnings: 4/14 06:43 am Check Earnings Report
Company Research Source: BNN Bloomberg
The peso tumbled more than 6% against the dollar as news began to filter through Friday of an Israel retaliatory strike on Iran, in what some in the market described as a “flash crash.” The currency had climbed to the strongest in almost nine years last month, driven by relatively high local interest rates and low currency volatility. “While the Mexican peso has long been favored due to its high yields, it is now exposed to a reduction in EM local positions,” said Rajeev De Mello, a senior portfolio manager at GAMA Asset Management. “While I am usually less concerned about the effects of geopolitical events which tend to fade quickly, in this case, there is a potential for further escalation.” The peso briefly tumbled to weaker 18.20 per dollar Friday before retracing some of those losses to trade at 17.3435, still down about 1.6% on the day. A carry trade involving borrowing in dollars and buying the Mexican peso had returned 1.2% for this year through Thursday, among the top Show less Read more
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