Trump's Rhetoric Shakes Up Currency Market

The video discusses the relationship between Trump's political actions and the Mexican peso's value. Initially, there was skepticism about this correlation, but by September, it became evident that Trump's influence was significant. Immigrant workers in Texas benefit from the peso's depreciation, allowing them to send more money home. The video explains the peso's fluctuations and forecasts potential changes based on the US election outcome, with predictions from Goldman Sachs indicating further depreciation if Trump wins and appreciation if Hillary Clinton wins.

What was the initial reaction to the idea that Trump's actions were affecting the Mexican peso?

• It was widely accepted from the start.

• People were immediately convinced.

• It was ignored by most people.

• There was skepticism initially.

How are immigrant workers in Texas benefiting from the current exchange rate?

• They are able to send less money back home.

• They can send more money back to their families.

• They are unaffected by the exchange rate.

• They are losing money due to the exchange rate.

What is one reason why the benefit of the stronger dollar is significant for families in Mexico?

• Pass-through inflation has not affected CPI in Mexico.

• The peso has appreciated against the dollar.

• The Mexican government is providing subsidies.

• Prices in Mexico have increased significantly.

What happens to the peso when the line on the chart goes up?

• The dollar is getting stronger.

• The dollar is getting weaker.

• The peso is getting weaker.

• The peso is getting stronger.

What is the forecast for the peso if Trump wins the election?

• The peso will appreciate by 10%.

• The peso will remain stable.

• The peso will depreciate by 20%.

• The peso will appreciate by 20%.