CAD and MXN post gains only to lose them as NAFTA rumours get denied
The moves aren't gargantuan by any means but as with the case of NAFTA headlines, more often than not the news hits during Asian trading and the follow through comes during US trading.
But for now, the earlier headlines look to have been rebutted. Politico earlier reported that US is set to announce a NAFTA handshake deal with Mexico tomorrow. And that caused a drop in both USD/CAD and USD/MXN.
But as the deal gets denied by Mexico, both currencies surrendered back earlier gains though the peso is still clinging on to some of it.
If anything, it highlights the main driver in the MXN and CAD this week (and has been for quite a period to be honest) - and that is NAFTA. There have been headlines of positive developments since last week and more progress is expected this week but all signs now are pointing closer towards a deal.
That should continue to provide some tailwind for both currencies mentioned and underpin them against other currencies as we close out the week.
