Peso, Loonie Jump On Reports US-Mexico NAFTA "Handshake Deal" To Be Announced Thursday.


One could be forgiven for thinking this sudden 'coming to the table' could be related to today's Trump-related tumult, but away from that cynicism, Politico reports that the Trump administration is planning to announce Thursday that it has reached a breakthrough in NAFTA talks with Mexico.

The Mexican Peso popped to two-week highs on the news...

Citing three unidentified people close to the talks, Politico notes that this "handshake" deal announcement on Thursday, would clear the way for Canada to rejoin negotiations to revise the free trade pact.

And the Loonie jumped...

Away from the positive news-cycle distraction this may be for President Trump, Mexico has for weeks been pressing to wrap up at least a preliminary deal by Aug. 25 in order for current President Enrique Peña Nieto to have time to sign it before he leaves office Dec. 1.

However, even if Pena Nieto signs the Nafta deal, it will be up to a Mexican Senate controlled by AMLO's allies to pass it, and to AMLO to implement it. That requires a deal that both can accept.

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