The U.S. dollar, despite performing relatively well against most currencies overall today, was unable to resume its upward momentum against the Mexican peso and the Canadian dollar. Recall that at the beginning of the week, these currencies were losing momentum after the announcement of plans by the new Donald Trump government to increase tariffs on trade with these countries.
The president-elect indicated that one of his first decisions will be to impose a 25% tariff on all products arriving from Mexico and Canada. In addition to this, Trump wants to impose an additional 10% tariff on all products from China, over and above those tariffs that are currently or will be imposed at a later date.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
At the moment, the MXN negates all the upward momentum we saw on the USDMXN pair on Tuesday. However, this does not change the fact that the pair maintains a strong uptrend in the long term, which can theoretically be extended as long as the FED keeps rates at elevated levels for more time and Trump himself actually implements a strongly protectionist economic-trade policy. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
