LatAm Currencies Rise After Trump’s Inauguration

Latin American currencies strengthened on Monday as traders sought further clarity on U.S. President Donald Trump’s protectionist pledges.
The Mexican peso strengthened as much as 1.5 percent to a two-week high before paring back gains to around 0.6 percent.



The peso had strengthened on Friday after Trump refrained from specifically mentioning Mexico in his inauguration speech after promising to renegotiate U.S. trade deals with the neighboring country throughout his campaign.

Trump said on Sunday he planned to talk soon with the leaders of Canada and Mexico to begin discussing the North American Free Trade Agreement (NAFTA). Wider emerging markets had also rallied earlier in the day, with MSCI’s emerging markets index snapping a two-day losing streak.

Still, traders warned of volatility in the coming weeks as Trump’s plans become clearer.

via Kitco

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza