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U.S.-Mexico agreement re: trade &.............>

FOREX
FOREX: U.S.-Mexico agreement re: trade & immigration has inspired risk-on flows
from the off, delivering a blow to safe haven assets, including JPY & CHF. Late
on Friday, U.S. President Trump confirmed that "the Tariffs scheduled to be
implemented by the U.S. on Monday, against Mexico, are hereby indefinitely
suspended" in exchange for tighter migration control by Mexican authorities.
- Worth noting uncertainty remains re: the details & substance of the deal.
- MXN has rallied, boosted by the aforementioned tariff suspension. USD/MXN has
neared the levels where it operated before the tariffs were announced.
- Firmer oil prices have lifted NOK & CAD to the top of the G10 currency
leaderboard, with USD also bid thanks to the Mexico deal.
- Little in the way of reaction was noted to the revision of final Japanese GDP
to +0.6% Q/Q from +0.5%, and better than exp. flash Japanese BoP c/a balance.
- As a reminder, Australia observes a market holiday today.
- Chinese trade balance, Italian industrial output, Canadian housing starts, as
well as industrial output, trade balance & GDP out of the UK. Also expected are
remarks from BoE's Haldane and Saunders, as well as ECB's de Guindos.

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