The US Dollar steadied versus the common currency Euro after an agreement was reached between Mexico and the United States to revamp the existing NAFTA trade deal. That has led to improved optimism that the global trade tensions which had been exacerbated by President Trump's rhetoric, might now be easing. Monday's agreement is likely to put pressure on the Canadian government who would need to consent to the latest terms. Analysts, however, are uncertain that Canada will readily agree.
As reported at 10:59 am (JST) in Tokyo, the EUR/USD was trading at $1.17, down 0.03% and off the session trough of $1.16727. The USD/CAD is trading at C$1.29687, up 0.0432%, while the USD/MXN pair was trading higher at 18.8152 Mexican Pesos, a gain of 0.30%.
Yen Lower as Safe Haven Demand Wanes
While the agreement is seen as positive overall for currency markets, analysts say that the de-escalation of tensions are likely to weigh on the safe haven currencies, notable the Japanese Yen, in the short term. The USD/JPY is trading at 111.269 Japanese Yen, up 0.26%; the pair has ranged from 111.041 Japanese Yen to 111.291 Japanese Yen.