MXN

The US dollar is retreating against the Mexican peso and Canadian dollar after Reuters reported that the Trump administration plans to implement tariffs on both of its biggest trading partners on March 1—a month later than had been previously threatened. Markets see this timeline providing room for Mexican and Canadian leaders to satisfy the president’s demands on border controls, potentially avoiding extremely-negative outcomes for all three economies. This news item should be taken with a Truth Social-sized grain of salt: the president has walked back several similar articles in recent weeks, indicating in each case that he does not intend...

The Canadian dollar and Mexican peso are spiralling lower this afternoon after US president Donald Trump told reporters in the Oval Office that he would follow through with imposing 25-percent tariffs on the two countries in retaliation for allowing fentanyl smuggling across their borders. According to some reports, Trump also suggested that he will make a determination on whether oil imports will be covered “this evening”. The story is still developing, and is clearly triggering stops across currency markets, but may not have staying power: we would caution market participants against overreacting, and will again reiterate our view that tariffs...