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.