The US election and Brexit have a whole lot in common.
Both represent the electorate’s anger towards an establishment they feel has failed them and is now endangering their way of life by pushing globalization and multiculturalism to their logical extremes. Both represent the triumph of rhetoric over reason. And both have played havoc with FX markets.
On the latter point, have a look at the following chart from Wells Fargo which compares the performance of the Mexican peso after Trump’s election to the performance of the pound following the Brexit vote:
From Wells Fargo:
Price action in the Mexican peso since the U.S. presidential election has been quite similar to moves in the pound after the EU referendum. Indeed, as the chart on the top right of this page shows, declines in the two currencies immediately following the respective shock events were almost identical in magnitude.