There will be a direct impact from US government actions with uncertainty surrounding the Federal Reserve reaction amplifying price moves as changes in fiscal, monetary and trade policies ripple through the global economy. Given a lack of confidence in the outlook, there are also likely to be frequent and substantial shifts in market sentiment.
The election of Trump as US President and a Republican-controlled Congress has created major uncertainty for the Mexican Peso. USD/MXN strengthened to record highs around 22.00 ahead of Trump’s inauguration with the central bank intervening to defend the currency.