The Peso is selling off. However, AMLO's 'new nationalisation' should not be a MXN negative, economists at ING report.

Very good demand for the Peso should USD/MXN correct to the 18.50-19.00 region

“Driving the correction looks to be a corporate finance deal announced this week that the Mexican government is buying 75% of the Mexican gas and wind facilities from Spain's Iberdola in a deal worth nearly$6bn. Mexican President AMLO describes this as a 'new nationalisation' – although that term may not be as scary for investors as it sounds. We do not read the deal as negative for Mexico's potential to attract nearshoring FDI inflows and suspect that there will be very good demand for the Peso should USD/MXN correct to the 18.50-19.00 region.”

“We see the potential for USD/MXN to trade to 17.50 and even 17.00 later this year.”