Funda wrap: Trump on NAFTA, Iran and China, dollar hits 91 handle, 10yrs 3%

Ross J Burland FXStreet

On a day where the DXY turns 91 and US 10yrs touch 3%, from a fundamental perspective, today's headlines have been centred around NAFTA, US trade in Asia and Iran with Trump hosting French President Macron.

One issue that the two leaders have been defining in their agenda in Washington was the Iran nuclear deal, where otherwise, Trump had set the 12th of May as the final U.S. deadline Trump to withdraw the U.S. from the 2015 agreement. France, Britain and Germany have urged the president to drop his resistance and even China and Russia are also in favour of keeping the agreement. Moreover, the AP reported that Iran will most likely abandon the nuclear deal if the US opt out.

However, Trump said he and Macron could have an agreement soon on Iran and Macron has proposed a new Iran deal with a focus on four main topics. Trump also said he and Macron have had substantive talks on Iran and they are looking forward to doing something, "but it has to be done strongly".

On trade between France and the US, Trump said, " trade with France is complicated because of the EU, which has trade barriers that are unacceptable", - RTRS.

Asia trade and N.Korea headlines:

Trump: will have a meeting with North Korean leader very soon, North Korea wants it as soon as possible - RTRS
Trump: Tsy Sec Mnuchin is going to China to negotiate on trade
Trump: US has very good chance of a deal with China

NAFTA headlines:

Trump says NAFTA talks going nicely
Canada’s Freeland: win-win outcome possible for revised NAFTA
Canada minister Freeland says NAFTA partners are making good progress on autos, but issue is “fiendishly complex”
Canada minister Freeland says meeting at USTR to focus on autos rules of origin
Canada minister Freeland says NAFTA deal “will be done when we’re done
Mexican NAFTA chief Guajardo: no guarantees that a deal on NAFTA can be reached
Mexican NAFTA chief Guajardo: European free trade deal is not a point of pressure for us to make a deal on NAFTA - RTRS

European politics and headlines:

Italy's 5-star leader Di Maio leader says if talks with PD fail, only alternative is a new election
Italy's 5-star leader Di Maio leader says idea of coalition govt with centre-right has passed
Italy 5-star leader Di Maio leader says sees the possibility of negotiations for coalition govt with PD
Italy 5-star leader Di Maio leader says any govt deal would have to be approved by 5-star members

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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