US Senate votes 89-10 to approve USMCA - Reuters
|US Senate votes 89-10 to approve US-Mexico-Canada trade agreement. The bill will now be sent to President Donald Trump to sign into law.
This was an overwhelming vote to pass the new North American trade pact, which no doubt will be another plus for the Predeents elections campaign for 202 and a positive for markets going forward.
The outcome will have fulfilled Trump’s 2016 campaign promise to update the original NAFTA with Mexico and Canada. Democrats have also regarded the deal as a win due to major changes they secured in negotiations with the Trump administration.
Now Canada has to approve the pact before it can go into full effect; Canada's House of Commons is expected to vote on the deal in coming weeks.
The focus now will be on the President's impeachment trial, which is just the third such trial in Senate history. The essence of the trial will get underway next Tuesday, following the Martin Luther King Jr. Day weekend.
FX implications
The USMCA is a risk positive outcome and should be supportive of the CAD, MXN and US dollar as well as equities.
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