Broad market regains optimism after Sheinbaum-Trump call❗️
Currencies of countries targeted by Trump’s tariffs rebound sharply, as Mexican President Claudia Sheinbaum announced after her conversation with President Donald Trump that US tariffs on Mexico will be delayed for one month. Mexican peso strengthens 2.7% against the USD, Canadian dollar adds 0.5%, EURUSD rebounds 0.6%.
President Trump has later confirmed the decision via social media. As stated by Sheinbaum, the deal is assisted by the series agreements, particularly focused on trade and security. Among them, Mexico agreed to deploy 10,000 National Guard officers to the US-Mexico border to prevent drug trafficking (especially fentanyl) into the US. In return, the US agreed to help prevent high-powered weapons from crossing into Mexico.
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USDMXN (H1). Source: xStation5
The improved sentiments spilled over markets, fueling gains on instruments previously suffering from uncertainty. The broad crypto market is seeing impressive gains, with Bitcoin alone adding 4% over the last hour and trading around 98 500 mark and Ethereum closing the gap after today’s slump (+3.5% over the last hour). A similar effect is visible in US indices.
Bitcoin (H1). Source: xStation5
The decision comes swiftly after Trump ordered a 25% tariff on exports from Mexico, accusing Sheinbaum’s government of engaging in an “intolerable alliance” with criminal groups in Mexico. Sheinbaum strongly rejected this accusation, emphasizing Mexico's efforts to combat drug trafficking and fentanyl exports.
In spite of the lack of insights from Trudeau-Trump talks, CAD also regains some strength on Mexico tariffs delay. Source: xStation5
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