As reported on the wires, via Bloomberg, Mexico’s government is preparing for the potential demise of the North American Free Trade Agreement as it looks to increase ties with Asia.
•“We are preparing for the scenario where we do not have a Nafta,” Kenneth Smith Ramos, director of the Nafta office at the Mexican Embassy in Washington.
•Mexico prepares to hold talks with U.S. President Donald Trump, who has threatened to withdraw from Nafta if his partners aren’t willing to renegotiate a deal that he blames for destroying American manufacturing jobs.
Meanwhile, the USD/MXN exotic seems to walk 'in the middle of nowhere' as traders adjust positions to find the next leg up or down. As of writing, the American dollar vs. Mexican peso clocks around 20.32 near the 100-DMA, a close and open below this level would drag the pair lower towards 19.71.
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