Trump’s New Team Brings Beef to the Dollar’s Bull Run
It’s a bright morning for the U.S. dollar—as the new administration starts to look like a real “Trump” thing.
Who’s in the Hallways?
- Stephen Miller – the anti‑immigration big‑shot who’s already set the tone.
- Tom Homan – the trade guy who’s got his fingers in every pot.
- Robert Lighthizer (Not yet confirmed but almost a sure thing) – a name that’s bound to stir up a storm in global trade circles.
These appointments are basically a shotgun blast of the former president’s policy lens, locking in a hard‑line stance on immigration and trade. The inevitable outcome? A more aggressive, protectionist U.S. trade policy that could keep global markets on its toes.
Why Mexico Won’t Be a “Free‑For‑All” Zone
Trump has a clear shot: stop factories from drifting to Mexico and block China from using Mexicos to sneak products into the U.S. The result? The Mexican peso is snapping, hovering around 20.5 per dollar–a sweet spot that’s dimming in the heat of the new policies.
- Pressure on the MXN is real, and I’m still playing 22 pesos per dollar as my target if it keeps going that way.
- Any further tightening could knock the peso even lower.
Other Latin American Currencies Care
The Colombian and Chilean pesos are feeling the heat as well—grabbing a share of the protectionist wave. If the U.S. cricket stumbles, you can expect them to be bent over by the same pressure.
What’s Next on the Money Pulse
We’re watching the U.S. inflation numbers with baited breath. If inflation starts to speed up again, that’s another nudge that could add more muscle to Latin American FX pressure.
- Expect a bullish dollar, but if protectionism tightens, the currency markets might stay in a low‑grade sweat.
- Short‑term improvements are unlikely—new protectionist policies, combo with the Mexico stance, make a quick rebound a tough ask.
In short, the Mexican peso is feeling the heat, the U.S. dollar is climbing, and Latin America’s currency market stands in the cross‑fire. Until the winds shift in a more forgiving direction, the scenario won’t look rosy.
