Mexico will not pay for Trump's wall, President Peña Nieto says

Mexican president Enrique Peña Nieto has steadfastly refused to pay for the construction of a wall on its border with the United States, despite Donald Trump's claims to the contrary.

Trump signed an executive order overnight which paved the way for the construction of a border wall, which will begin construction in "months".

He told ABC News during an interview that the US taxpayer would initially foot the bill, but would be "reimbursed" by Mexico.

In a televised address responding to Trump's claims, Peña Nieto rejected the idea of Mexico paying for the wall.

"I am saddened and against the decision by the United States to continue with the construction of a wall that for years...has divided us," Peña Nieto said.

"Mexico does not believe in walls. I've said it time and time again, Mexico will not pay for any wall."

The US President rose to power on a riproaring campaign full of promises to limit immigration and shore up the country's southern border, and has been busy in his first week of office putting his plans in place.

While the decision is likely to face intense scrutiny from a Congress controlled by his own party, if Trump were to pull through on his promises it would be a major coup for the US. according to IG market analyst Josh Mahony in London.

"With all the focus on fiscal stimulus, the decision to build a $14 billion wall would certainly prove a positive first step for the US construction industry," Mahony said.

"Whether Congress are willing to reallocate $14 billion to the building of a wall is another matter. One thing is for sure, if Trump manages to build a wall that benefits US jobs and security, yet is paid for by Mexico, it would be an incredible sign of intent from the new President."