As the gongs sounded of a US-Mexico trade deal, broad USD selling slowed while Mexican peso rose, yet MXN was unable to hold high ground.
While the downside risk of a failed agreement has decreased, confusion has increased. For now, risky assets and emerging currencies are attractive, but ultimately they will need yield support.
Trump is hailing the Mexican agreement as the biggest trade deal ever. Canada has returned to the table, saying the door is open for agreement. Markets immediate reaction was of optimism, sending the S&P 500 to a new all-time high.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments."