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Trump’s Tweet on Building a Wall and It's Impact on MXN, GBP, EUR and RUB

By Sera Akinci  |  26/01/2017 12:48


The President of the United States; Donald Trump supports the construction of a multi million dollar, several thousand mile border wall with Mexico. He believes that the US boarders have not been protected and respected properly, which caused millions of illegal immigrants. 

There should be some sort of legal action taken to prevent the illegal immigration into the country especially from the ‘’terror-prone’’ countries, but is the constructing of a wall the only logical solution?

Mexico’s Economic Minister Ildenfonso Guajardo has legitimately stated that he would walk away from the negotiating table if the wall and remittances will be an issue as Trump is expected to renegotiate the NAFTA(North America Free Trade Agreement). Trump has continued his obstinacy about the topic and tweeted ‘’Big day planned on national security tomorrow. Among many other things, we will build the wall!’’ on Tuesday. With that being said, the US dollar index went down by 0.3% at 99.97 and the Mexican Peso went up by 0.4% at 21.4400 per Dollar. It was expected for more emerging topics such as tax reforms, deregulations and infrastructure plans to be discussed however, the priority has been authorizing the construction of a wall between the US and Mexico.

After his tweet about the wall, GBP is at its best level since mid-December and is up by 0.5% at 1.2588 against USD. Although we are expecting this rise to be short-lived as the uncertainty of Article 50 procedure is expected to lead a depreciation in GBP.

The EUR is up by 0.2% at 1.0753 against USD whereas RUB changed a little at 59.2213 per USD.

On this wise, protecting the US borders from illegal immigration? Ok. Building a nedless wall? Not OK.


 

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