Mutual benefits accrue on both sides of the border from bilateral trade, as well as capital and labor investments. Ongoing structural reforms in Mexico should enhance this process. Significant not only for Mexico, but for the larger emerging-market universe, is the influence of U.S. monetary policy.
Shifting expectations for U.S. policy moves have tended to fuel volatility in global financial assets, with prices tending to move in the opposite direction of economic news. Mexican markets have adjusted to changes in views on U.S. monetary policy normalization mainly through the exchange rate.