Remember the Alamo
FX Trader, Loonieviews.net
Summary: Mexico and the US have a history, and the animosity is enshrined at The Alamo in Texas.
The president doesn’t seem too happy with the course of events, and there has been fall-out. The head of Homeland Security and two senior administrators have “stepped down” alongside the head of the Secret Service. Coincidence? For a man who made a name for himself yelling “You're Fired”, not likely.
The US auto industry was happy. Closing the border may slow the pace of illegal immigration, but it would also cripple car production due to a lack of parts. It also helped the Mexican peso. USDMXN surged to 19.4760 in the run-up to the threat and immediately afterwards but recovered to 18.9035 today.
The China/US trade talks must be well on their way to an agreement. That’s because Trump has once again turned his tariff cannon on the European Union. He is threatening €11 billion in tariffs on EU imports including aircraft and olive oil. The Office of the US Trade Representative said that repeated World Trade Organization findings that EU “subsidies to Airbus caused adverse effects to the United States.”
The Mexican border closure and the EU tariff threats have so far just been entertaining distractions for the major G-10 currency traders but not trading factors. They are sidelined ahead of the European Central Bank meeting and the release of the Federal Open Market Committee minutes tomorrow.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)