Mexico's USMCA negotiator Seade: Making progress toward a deal, questions still pending

Mexico's USMCA negotiator, Jesus Seade, says making progress toward a deal but adds that questions are still pending.

The update follows the prior day's news that Mexico’s president on Tuesday had challenged US efforts to subject Mexico's labour market to external oversight under a new North American trade deal. The president wanted the US to at least consult the Mexican Senate before new changes are signed off.

FX implications

There is nothing here to really spark any price action from the FX space – it is an ongoing theme since a year ago from which until we have clarity, (deal is expected to be done by the end of this year), whatever progress we hear is all noise without enough fat on the bone to entice investment in one direction or the other. The MXN, CAD and USD are the obvious plays within the context of the USMCA developments.