CAD and MXN Bounce on NAFTA retraction

Mexico’s peso and Canada’s dollar jumped after President Donald Trump said he wasn’t going to quit Nafta, just a day after reports his administration might pull out of the free-trade agreement.

The about-face pushed the peso up 1.1 percent as of 11:22 p.m. in New York, recouping more than half of its 1.7 percent drop on Wednesday. The Canadian currency advanced 0.6 percent, halting a four-day decline. Trump has often blamed the North American Free Trade Agreement for hollowing out America’s manufacturing sector by relocating jobs to lower-cost Mexico.

“I think Canada is going to get a bounce and I think Mexico should continue to strengthen because this was a pretty major headwind for both those currencies,” said Stephen Innes, a senior currency trader at OANDA in Singapore. “This opens the door for a bit of a buy-in on commodity currencies.”



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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes