Peso Crushed After Mexican President Cancels Meeting in Latest International Twitter Spat Patti Domm - CNBC
go to original January 26, 2017

As President Trump begins to renegotiate the North American Free Trade Agreement, Mexico says an unfavorable deal may prompt it to walk away from NAFTA (NewsBeat Social)

Update: Trump's Wall Will Now be Paid for by Americans – White House Announces 20% Tax on Imports from Mexico (The New Civil Rights Movement)

Mexico's peso lost about a percent against the U.S. dollar after Mexican President Enrique Pena Nieto canceled a meeting with President Donald Trump, in a dispute over Trump's border wall.

Pena Nieto was expected to visit the U.S. next week to discuss immigration and trade issues, and Mexican officials have been meeting with the Trump administration ahead of that meeting. Though Trump seemed to make conciliatory comments about Mexico Wednesday, the president reversed sentiment by tweeting Thursday that the meeting should be canceled if Mexico won't agree to pay for the wall.

The Mexican president tweeted back, in Spanish, that he informed the White House that he would not be attending the meeting.

...After Pena Nieto's tweet, the dollar moved higher against the Mexican currency. Dollar/peso rose to 21.30, after hitting 20.86 earlier in the day. The peso was down 1.1 percent against the dollar at midday. The low for the peso was when it reached 22.0385 to the dollar on Jan. 11.

"Yesterday's conciliatory tone has been shattered by those tweets," said Andres Jaime, global foreign exchange and rates strategist at Barclays. "It's a reversal from yesterday's optimism that this was going to go smoother than initially thought … In the meantime, [the peso is] going to remain under pressure."

Jaime said he doesn't see the peso going much lower than it got in January, but he does expect it to be more volatile. He expects it to trade flat this year, but the risk would be more to the upside, because of the deep slide in the peso already.

Read the rest at CNBC

Related: Mexican Official Widens Tax-Dodge Complaint Against Trump (Reuters)

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