Deutsche Bank Like Mexico's Peso as It's Seen Riding The U.S. Trade Wave

08:02 AM EDT, 09/25/2025 (MT Newswires) -- Deutsche Bank said it recently turned bullish on Mexico's peso (MXN) as besides the high carry, the resilience of the trade balance has been another positive driver for the currency, improving the current account despite an underperformance of primary and secondary income (remittances).

The introduction of United States tariffs has reshaped global trade, and Mexico has been a major beneficiary, wrote the bank in a note to clients. Not only has Mexico's goods balance improved, but the trade links with the U.S. have also tightened.

Mexican exports to the U.S. have significantly increased since April 2025, at a higher pace than other regions --Europe, Asia, Americas excluding U.S.) -- although some of this could be influenced by unusual patterns of frontloading.

In any case, it appears the Mexican authorities' decision to enhance bilateral relations with the U.S. has worked out well so far, stated Deutsche Bank.

Machinery and transportation (autos) are the two main Mexican exports to the U.S., and what's most notable is that Mexico has gained market share in both categories. Since U.S. President Donald Trump took office in January, machinery imports from Mexico have surpassed those from China, while at the same time Mexico has consolidated its market share in transportation (autos).

From Mexico's standpoint, exports of these categories are at historical highs.

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