# Trump threats drive historic Brazil, Mexico currency divergence

> Reuters reports that Trump's tariff threats have driven a sharp divergence between the Brazilian real and Mexican peso. The peso fell as much as 5% in recent weeks before recovering most of that loss, with analysts saying a lasting risk premium may now attach to Mexican assets.

- Date: 2019-06-14 · published 2019-06-14T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/58814-trump-threats-drive-historic-brazil-mexico-currency-divergence
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A structural shift of investor money from Mexico to Brazil could strengthen the real and make Brazilian soybean meal and corn more competitive on export markets, while a weaker real would do the opposite.

## Read by commodity

- SBM: neutral
- USDBRL: bearish ▼
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2018-06-29 | [Brazil's currency and stock market recover on Thursday, helped by opinion poll — MercoPress](https://feedsoft.ai/events/64737-brazil-s-currency-and-stock-market-recover-on-thursday-helped-by-opinion-poll.md) | +1.3% | -3.7% |
| USDBRL | 2022-02-23 | [Brazil’s World-Beating Currency Rally Storms Past Key Level - Bloomberg](https://feedsoft.ai/events/42913-brazil-s-world-beating-currency-rally-storms-past-key-level-bloomberg.md) | +1.9% | -2.5% |
| USDBRL | 2018-09-28 | [Brazilian currency strengthens below 4 to the dollar: first time in five weeks — MercoPress](https://feedsoft.ai/events/63259-brazilian-currency-strengthens-below-4-to-the-dollar-first-time-in-five-weeks.md) | -1.8% | -8.2% |
| USDBRL | 2018-10-08 | [Brazil Stocks, Currency Surge as Bolsonaro Takes Commanding Lead - Bloomberg](https://feedsoft.ai/events/8763-brazil-stocks-currency-surge-as-bolsonaro-takes-commanding-lead-bloomberg.md) | -4.1% | -4.3% |
| USDBRL | 2020-11-26 | [Brazilian Real is the most undervalued EM currency - IIF - Forex Crunch](https://feedsoft.ai/events/50343-brazilian-real-is-the-most-undervalued-em-currency-iif-forex-crunch.md) | -3.0% | -2.9% |
| SBM | 2020-11-26 | [Brazilian Real is the most undervalued EM currency - IIF - Forex Crunch](https://feedsoft.ai/events/50343-brazilian-real-is-the-most-undervalued-em-currency-iif-forex-crunch.md) | -1.0% | +5.0% |
| SBM | 2024-08-09 | [Brazil: Real Trouble?](https://feedsoft.ai/events/11943-brazil-real-trouble.md) | -7.2% | -3.9% |
| SBM | 2019-07-01 | [China, Brazil and the Soybean Crush](https://feedsoft.ai/events/58655-china-brazil-and-the-soybean-crush.md) | -2.8% | -2.8% |

## Sources

- sg.finance.yahoo.com: https://sg.finance.yahoo.com/news/trump-threats-drive-historic-brazil-160558904.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.