“Nowhere near a deal” for NAFTA

1. US trade representative Lighthizer stated yesterday, that “the NAFTA countries are nowhere near close to a deal”.
2. The statement was made as the Senate’s Thursday deadline passed, to present the U.S. lawmakers with a revamped NAFTA deal.
3. 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.
4. Should there be negative headlines about the NAFTA deal, we could see the CAD and the MXN weakening.

Efforts to appease North Korea

1. 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.
2. Trump also distanced himself, from National Security advisor Bolton’s recent comments and stated that he is not pursuing the “Libyan model”.
3. 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.
4. 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.

IronFX Daily Report ‘May 18th’