Trump reiterated what he has periodically said, most recently last week, that the U.S. may cancel the North American Free Trade Agreement.
We are in the NAFTA (worst trade deal ever made) renegotiation process with Mexico & Canada.Both being very difficult,may have to terminate?
— Donald J. Trump (@realDonaldTrump) August 27, 2017
Trump also said that “with Mexico being one of the highest crime Nations in the world, we must have THE WALL. Mexico will pay for it through reimbursement/other.”
With Mexico being one of the highest crime Nations in the world, we must have THE WALL. Mexico will pay for it through reimbursement/other.
— Donald J. Trump (@realDonaldTrump) August 27, 2017
And while Mexico again repeated that it would in no way, shape or form pay of the wall…
- MEXICO FOREIGN MINISTRY SAYS MEXICO WILL NOT PAY FOR U.S. BORDER WALL ‘IN ANY WAY OR UNDER ANY CIRCUMSTANCE’
… the market’s initial reaction has not been kind to the Mexican currency, and in early Sunday trading USD/MXN spiked in reaction to Trump threatening Twitter comments, rising as much as 0.8% to 17.7504 before settling around 17.667 as once again the fate of NAFTA appears to be in jeopardy based on nothing more than one angry Trump tweet.
The iShares MSCI Mexico Inv. Mt. Idx. ETF (NYSE:EWW) was unchanged in premarket trading Monday. Year-to-date, EWW has gained 32.47%, versus a 10.42% rise in the benchmark S&P 500 index during the same period.
EWW currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 23 ETFs in the Latin America ETFs category.
This article is brought to you courtesy of ZeroHedge.
