Mexican Peso up as Trump Presidency dims

With the possibility of a Donald Trump presidency dimming in the United States, the Mexican currency crept up higher on October 10. Trump’s recent comments about women have all but torpedoed his chances of becoming the President of the most powerful country in the world.

Trumped out

Trump at present faces the most formidable crisis in his campaign. He was outed by a tape which has a recording of the Republican presidential nominee making locker room comments concerning women. The incident deepened the divide between Trump and a number of other establishment Republicans. Investor think was not much impacted by his debate with Hillary Clinton, his Democratic opponent.

Japanese stock market reactions were damped by a holiday in the Asian country. There was a little change in equities. Only 0.1 percent positive change was seen in MSCI index of the Asia-Pacific shares excluding Japan. If one goes by the spread betting signs, Europe will see modest operating gains. There was also a 0.2 percent rise in the Emini futures for Standard & Poor 500. Australian stocks also exhibited identical behavior. The Shanghai market consolidated 1.2 percent with the end of an extended holiday.

Asian stocks and Trump elections

Other Asian bourses did not exhibit the same behavior. Stocks slid 2.9 percent in Thailand. This happened after the palace issued a statement saying that King Bhumibol Adulyadej, the 88 year old monarch, had suffered a bout of ill health.

Betting markets covering the presidency has lengthened odds of Trump victory. Nate Silver, the forecast specialist has put the probability of Clinton winning the presidency by approximately 81 percent. His assessment was put up at his FiveThirtyEight website.

Clinton is known to the market as a known entity with centrist politics. A Trump administration, on the other hand, would mean a period of total uncertainty for American foreign policy, economy and trade. Governance at Federal Reserve also cannot be predicted. Plans by Trump include his aims to put tariffs on imports. The North American Free Trade Agreement or NAFTA are regarded by Trump and his supporters as bad for the United States. In case Trump becomes president, things will be bad for Canada and Mexico. This is the reason for currency swings as the chances of a Trump presidency change swiftly. October 10 saw both currencies gaining, with the American dollar dipping 1.6 percent on Mexican Peso and off by 0.3 percent on Canadian currency.

Leave a Comment