ForexLive Asia FX news wrap: MXN hit by downgrades, no trade deal

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday 6 June 2019  

After US markets had packed up for Wednesday a quick 3 news items in succession hit the Mexican peso lower. Moody's downgraded their outlook for Mexico, Fitch cut the country's rating and then the US/Mexico trade talks finished for the day with little progress on tariffs nor immigration. The bullets are above, bolded.

The peso dropped as each development hit, all in the space of around 10 minutes. 

Forex news for Asia trading Thursday 6 June 2019  

What's ahead? Well, talks will continue Thursday US time. There do seem to be reasons to expect a resolution, but Trump again warned that he'd hike tariffs come Monday if nothing is agreed in coming days.

There was a small spread to 'risk off', but it was limited. Yen was a beneficiary, USD/JPY dropping from above 108.40 to circa 108.20 before a rebound .... and then back down toward 20 as I post.

The Australian dollar had barely a ripple and its maintained a small range for the session. Trade data for April showed a slightly smaller surplus than expected, and than in March, but a solid performance nonetheless. NZD has ticked up a little better, but again a small range only.

EUR, GBP barely changed on the session. Ditto for USD/CHF.

Oil managed to scrape back a few cents, CAD up a few ticks also. 

Still to come:

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