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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

NAFTA Deal Deadline | Emerging Market Currencies Continue to Decline

Published August 31, 2018
  • Negotiations between Canada and the US dissolved late Thursday night as the Trudeau government has expressed apprehensions regarding a NAFTA deal conclusion. The US president has warned he could proceed with a deal with Mexico alone and levy tariffs on Canadian-made cars if Ottawa does not come on board.
  • President Trump wants to move ahead with a plan to impose tariffs on $200 billion in Chinese imports as soon as next week. Trump has criticized management of the yuan, stating that China has devalued its currency in response to a recent slowdown in economic growth.
  • The Indian rupee and Indonesian rupiah are the latest emerging-market currencies to hit all-time lows against the greenback. As well, the crisis in Argentina is proving too strong to resist for the wider developing-nation ecosystem, as the peso dropped by as much as a fifth despite the central bank raising rates to 60%.
  • President Trump rejected an offer from the European Union to eliminate tariffs on cars if the US did the same. Currently, the US imposes a 25% tariff on light trucks and pickups and 2.5% on smaller cars.