Thursday 10 November 2016

Will Mexico's relations with the US change under Trump?

The last few days of trade in financial markets worldwide has been characterised by a mild dose of uncertainty mixed with high outputs of volatility generated from a shock victory of Donald Trump as the president-elect of the United States after he defied all expectations of a landslide defeat and secured his spot in the Oval Office for the next four years.

Although the banter around Trump's victory simply won't go away anytime soon, the adjustment to the type and character of administration he would assemble prior to his appointment on the 20th January next year has driven the markets to hastily assess the variability of his rhetoric and decipher whether the effects will be positive or negative.

Yesterday we saw a major selloff in most asset classes following the prospects of Trump securing the the nod from American voters which was assertively returned to the levels of the previous close later in the day when Trump delivered his first speech after his victory was declared which resonated loudly with the chances of seeing a boost in infrastructure spend, a policy issue the Republican party has been pressing the incumbent administration on for months now.

However the instrument that drew the most attention was the gigantic 14.5% depreciation in the Mexican Peso against the US Dollar based on comments made by Trump in the earlier days of his presidential nomination candidacy for the Republican party. The comments have seemingly followed him throughout his entire campaign serving as a backdrop to what many believe highlights the grave shortcomings in Trump's ability to lead the United States, implying he shows no consideration for the rights of other people besides Americans.

We can only expect firm convictions from Trump once he takes office in appeasing the masses who turned their backs on the mantra of "Yes We Can" instead opting to focus on making "America Great Again" on the back of promises to exclusively allocate it's energies to the needs of the United States whilst stepping away from its responsibilities as the leader of the Free World.

In theoretical terms it might sound feasible, practically speaking it's devoid of any sense of realism and the ease with which Trump may have attested to the speed in how quickly he can get things done, there is a feeling he might be met with more political barricade's than he could've ever imagined making this move one of many battles his going to face as president, if not the largest.

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