Daily Report: Nowhere near a deal for NAFTA & Efforts to appease North Korea
Check out today’s market highlights!
“Nowhere near a deal” for NAFTA
- US trade representative Lighthizer stated yesterday, that “the NAFTA countries are nowhere near close to a deal”.
- The statement was made as the Senate’s Thursday deadline passed, to present the U.S. lawmakers with a revamped NAFTA deal.
- On the other hand the Canadian prime minister stated that he had a “positive feeling about the deal, while a Mexican official noted that a deal might be possible by the end of May.
- Should there be negative headlines about the NAFTA deal, we could see the CAD and the MXN weakening.
Efforts to appease North Korea
- In an effort to appease North Korea’s leader president Trump said that Kim’s security would be guaranteed, in any deal and his country would not suffer the fate of Libya.
- Trump also distanced himself, from National Security advisor Bolton’s recent comments and stated that he is not pursuing the “Libyan model”.
- Overall, on the US side preparations for a possible Trump-Kim meeting seem to continue as planned, despite North Korea casting doubt on the meeting per se.
- Should there be negative headlines for the issue we could see safe havens strengthening.
Today’s other economic highlights:
- Germany: Producer Price Index for April, Survey:+0.3% mom Prior:+0.1% mom, 06:00 (GMT), could support the EUR
- Eurozone: Current Account for March, Survey: N/A Prior:22.7b, 07:00 (GMT), any reading> 22.7b could support EUR
- Canada:
- CPI for April, Survey: +2.3% yoy Prior: +2.3% yoy, 12:30 (GMT), could weaken the CAD
- Core BoC CPI for April, Survey: +1.4% yoy Prior:+1.4% yoy, 12:30 (GMT), could weaken the CAD
- Retail Sales for March, Survey: +0.3% mom Prior: +0.4% mom, 13:15 (GMT), could weaken the CAD
- Speakers: FOMC members Mester and Brainard as well as Dallas Fed President Robert Kaplan speak.