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US Election: USDMXN could spike if Trump wins – #SaxoStrats video
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The US dollar versus the Mexican peso may make a short-term spike should Donald Trump win the US presidency, says Saxo Capital Markets’ global macro strategy Kay Van-Petersen.
Mexico’s proximity to the US, Trump’s negativity towards the country and his criticism of the North American Free Trade Agreement - Mexico is a member of NAFTA - means USDMXN may well react strongly to the election result.
Kay Van-Petersen says that USDMXN could be an interesting short structural trade if Trump wins, but says the pair may readjust quickly after its potential spike.