If anyone ever needed more evidence that fiat currencies are closely tied to political news, look no further. Ever since the FBI cleared Hillary Clinton of her email investigation–for the second time–both the US Dollar and Mexican peso increased in value. Although a lot of people disagree with the FBI’s findings, this news reduces the chances of Trump becoming the next US President.
US Dollar and Mexican Peso Appreciate After Clinton News
The latest FBI investigation into Hillary Clinton’s private email usage will spark many debates moving forward. It is impossible for the agency to investigate hundreds of thousands of emails in a 24-hour time span. It is even more ludicrous to see them not “finding any evidence of wrongdoings”. All of that, though, is a topic for a different debate.
What is rather surprising is how this news affected two of the most talked about fiat currencies in existence today. Both the Mexican Peso and the US Dollar noted value increases once the news regarding the FBI investigation was released. This is not entirely surprising, as finance and politics have been entwined for centuries.
With the US Dollar gaining 1% in value over the Yen, things are looking somewhat positive for the US economy. At the same time, the Euro lost 0.6% of its value, showing more signs of a bullish USD trend. It is also evident that investors and traders want nothing more than to see Clinton become president, as the other option is not a viable outcome.
A similar trend was noted on the Mexican Peso charts, as the currency suddenly gained 2.25% against the US Dollar. Although this may only be a brief reprieve, it also goes to show that any positive Clinton-related news has a positive effect on both currencies. In many people’s minds, Clinton is the lesser of two evils, although this does not mean that there will be a bright future for the United States.
With the US elections being less than 48 hours away, things are becoming very tense. The whole world is watching and wondering what will happen next. It is evident that both Presidential candidates have a lot of skeletons in multiple closets, and they are slowly starting to come out. Regardless of the tale some groups, such as the FBI, want to spin, neither candidate is honest or legitimate. Then again, that is to be expected where politics are concerned.
Despite this temporary value increase, the Mexican government continues to monitor the election situation closely. Several contingency plans have been put into place to accommodate any voting outcome. This tense situation will have global ramifications regardless of who becomes the next US President.
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