The peso alerts Mexico isn't trying ahead to 4 extra years of Trump

One of many clearest Trump trades is promoting the Mexican peso and it is a runaway transfer at this time, related (although at a a lot smaller magnitude) to what occurred in 2016 when Trump beat Clinton.

That evening, USD/MXN rose to 19.eight from 18.three. It continued the next day at 20.four.

In the present day it is up about zero.5 factors, to 20.7 from 20.2.

The path of the transfer clearly highlights which method the market thinks this election will go. However the smaller magnitude of the transfer exhibits that it is much less of a shock than final time. Trump has promised large tariffs and one other renegotiation of the USMCA.

This text was written by Adam Button at www.ubaidahsan.com.



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