• The Mexican Peso plunges several percentage points against its major pairs after Donald Trump secures 267 electoral votes, three away from victory. 
• Trump’s threats of whacking huge tariffs on Mexican imports is wreaking havoc with the Peso. 
• USD/MXN closes an open chart gap and extends its established uptrend within a rising channel.  

The Mexican Peso (MXN) plummets in its most-heavily traded pairs on Wednesday, especially versus the US Dollar (USD), against which it is down over two percent after results from the US presidential election show Republican nominee Donald Trump extremely close to victory. 

Trump leads with 267 electoral votes to Vice President Kamala Harris’ 224, according to latest figures from the Associated Press. This leaves Trump needing only three more electoral votes to reach 270 and enter the White House. The news that the Republican party has won a majority in the United States (US) Senate and might also scoop the Congress is further weighing on the Peso and lifting the Greenback in all its pairs.

The Peso’s massive drop against the USD is due to Trump’s threat to place punitive tariffs on Mexican imports as well as the overall uplift to USD from his Dollar-positive economic policies.