Peso, Loonie Spike On Positive NAFTA News

Tyler Durden's picture

With NAFTA negotiations currently taking place, and NAFTA currencies very sensitive to every headline, both the Peso and Loonie suddenly spiked on a Bloomberg headline that suggests that talks just may be progessing in a favorable fashion:

  • NAFTA DEAL NEAR ON TELECOM, ENERGY, E-COMMERCE:MEX BUSINESS REP

Some additional color from Bloomberg:

Mexico sees the nations close to finishing work on telecom, energy, and digital commerce chapters in the fifth round of negotiations ending today, but needs Canada and the U.S. to also sign on, Juan Pablo Castanon, head of Mexico’s business chamber known as CCE, says in an interview with Radio Formula. 

 

"There are chapters that can be closed and are very close" Castanon says, adding that "We need to keep going topic by topic."

 

Business representatives trying to convince U.S. to accept agreement on areas where there’s consensus and leave the more difficult topics for later so that solutions can be found

Negotiators have been advancing on technical work on various topics despite presence of controversial proposals in other areas.

 

Mexico is ready to close what can be closed.

In response, USDMXN has charged lower on the headline, as any whiff of Nafta being saved sends both MXN and CAD surging. USDMXN is now at 18.8625 and USDCAD is at 1.275.

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Ecclesia Militans's picture

NAFTA: it's like a 1990s bad movie that keeps showing up on all the premium cable channels.  Someone needs to alert Soros that we have Netflix now, and Adam Sandler movies trump his collectivist fantasy regardless of the size of his special effects budget.

Juggernaut x2's picture

NAFTA Article 2205 gives Orange Jewlius the power to scrap NAFTA but he doesn't have the fucking balls to pull the trigger. 

. . . _ _ _ . . .'s picture

Damn.
I was hoping NAFTA 2.0 would flop in which case Canada would have been able to keep its water.

Stan522's picture

How many currencies is more disrespected than the peso in the world....? No many.....

gatorengineer's picture

Damn, not sure I can take much more winning / sarc.......

Herdee's picture

Is there a deal on Cannabis?

Smegley Wanxalot's picture

The fact that the Looney and the Peso spiked vs the USD is evidence that Trump is right about those to nations scoring the better deal on NAFTA than the US does.

Juggernaut x2's picture

The Orange Dotard should scrap it but he'll talk a lot of shit and he will never follow through- string the Trumptards along for 3 more years and then get reelected. 

msamour's picture

I am a Canadian, and I say, yes just scrap the deal. We will make other deals with other nations. I don't think we want to be around, and too heavily involved with the Federal Reserve Notes when the American empire goes down. Shit take your economy man! You can have it. I'll buy from others, why not...

Phillyguy's picture

Large corporations have made a fortune out of NAFTA- read job outsourcing. The goal is to lower wages as much as possible and maximize corporate profits, rhetoric from Trump notwithstanding. The majority of people in Congress will do whatever they can to insure these policies continue.

TheSilentMajority's picture

If Mexico says it, it must be true.

Scornd's picture

END NAFTA anything less is stupid.