• The Mexican Peso closed Monday slightly higher in its key pairs. 
• President-elect Claudia Sheinbaum takes over from outgoing President Andres Manuel Lopez Obrador on Tuesday. 
• USD/MXN pauses in its uptrend, but the bias remains bullish. 

The Mexican Peso (MXN) fluctuates between modest gains and losses on Tuesday after closing the previous day marginally higher in its major trading pairs – USD/MXN, EUR/MXN and GBP/MXN. The lack of volatility is probably due to the fact that October 1 is a public holiday in Mexico, and many financial market participants are absent from their desks for both days at the start of the week. 

The news flow out of Mexico is mainly concerned with the outgoing President Andres Manuel Lopez Obrador’s (AMLO) handover of power to his successor, President-elect Claudia Sheinbaum, who officially takes office on October 1. Global investors will probably watch her inauguration speech with interest in an attempt to discern the broad policy trajectory of her administration. On Monday, news of her cabinet reshuffle indicated she is keeping some of AMLO’s old personnel alongside some new hires. 

However, Sheinbaum has always made it clear she supports most of AMLO’s contentious constitutional reforms, which rocked the Peso after her election win in June.