Dollar is sold off broadly as markets anticipated announcement of a certain agreement between the US and Mexico on trade. It was originally thought as part of the trilateral NAFTA agreement. But it turned out to be something that could eventually replace NAFTA.
Trump said that the deal will now be called the United States-Mexico Trade Agreement. He said the NAFTA name will be ditched. He added that the deal is very special for farmers as Mexico will start buying as many farm products from the US as possible.
Meanwhile, Trump said that the negotiation with Canada had not started, adding that if they want to negotiate fairly, the US would do that. Trump also said the US could do a separate deal with Canada, or make it part of the deal with Mexico.
USD/CAD dipped to as low as 1.2952 but quickly recovered as trades realize that Canada is totally out of the picture.
