Dollar Recovers on US-Mexico Deal | UK GDP Disappoints
Published June 10, 2019
Dollar recovers broadly and stock markets rebound as President Donald Trump announced to suspend the plan to impose a 5 percent charge on all Mexican imports. The State Department said the two countries had reached an agreement on ways to slow the recent rush of migrants trying to make it across the southern border and into the US. The Mexican peso surged more than 2 percent after the announcement.
The UK GDP contracted sharply in April by -0.4 percent versus -0.1 percent previous. This marks the second consecutive monthly contraction and the largest monthly slump since December as Brexit paralysis took hold following the proposed deadline for departure from the EU.
The Canadian dollar strengthened and made a seven-week high of 1.3224 against the greenback before retracing back to 1.3280 levels this morning. Positive Canadian dollar movement was largely driven on the back of dismal US non-farm payrolls numbers and after the Canadian economy added a higher than expected 27,700 net new jobs in May, official data showed on Friday.
WTI oil extended gains above $54 a barrel after Saudi Arabia said OPEC and non-member Russia were close to agreeing to extend an output production cut beyond June and the United States withdrew a tariff threat against Mexico, removing a cloud over the global economy.