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The peso has been pummeled by Donald Trump’s promise to build a wall and make Mexico pay for it.
According to foreign-exchange strategists, risks are now starting to spill north of the border too, where the Canadian dollar is also becoming sensitive to the prospect of the Republican nominee prevailing in the presidential election.
“U.S. politics will remain at the forefront of the markets’ minds from now on, adding an edge to the general nervousness,” wrote Societe Generale Global Strategist Kit Juckes in a note to clients on Sunday. “The Mexican peso took all the early impact, but it’s spreading and by Friday it had reached the Canadian Dollar.”
The loonie is commonly described as a petrocurrency, but lately, there are signs it’s more of a petrified-by-Trump currency.
Juckes’ colleague, FX Derivatives Strategist Olivier Korber, said Trump’s declaration that he would pull out …
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