Emerging Market Currencies Steady as Trump's Inaugural Speech Provides Clarity
The MSCI EM Currency Index posted a 0.5% gain, bolstered by strong performances from the Czech koruna and Hungarian forint. Despite concerns over protectionist trade policies, absence of concrete details provided relief.
Mexican Peso Pares Gains on Immigration Focus
The Mexican peso initially weakened as President Trump prioritized immigration in his speech, including plans for a southern border emergency and designation of Mexican cartels as terrorist organizations. However, the lack of specific tariff measures eased concerns.
Trump's Trade Policy Approach Remains Unclear
Marco Oviedo of XP Investimentos noted the absence of details on specific trade policies, leaving the market with insufficient information to assess risks. Earlier reports had suggested a delay in China-specific tariffs for potential engagement.
European Currencies Benefit from Ukraine Conflict Resolution Optimism
Emerging European currencies exhibited strong gains due to heightened expectations of a resolution to the Ukraine conflict. President Vladimir Putin expressed Russia's willingness for talks, boosting Eastern European currency values.
Emerging Market Stocks Rise
The broader MSCI EM Stock Index advanced by 1.2%, indicating positive sentiment in emerging markets.