The Mexican peso trades at two-month lows against the dollar
- Trump says the US to impose 5% tariff on all goods from Mexico
- Mexico says if the US imposes the new tariffs Mexico will respond strongly
- The 5 % tariff US President Trump just slapped on Mexico - here's how it will rise to 25% by October
In case you missed the headlines from this morning. Basically, tariff man strikes again and this time he's channeling his powers to Mexico instead of China. Nonetheless, it's put markets in a sour mood as we look to begin the European morning session.
Not surprising, the MXN is the biggest loser as the currency falls to two-month lows against the greenback. USD/MXN is closing in on a test of the March highs at 19.62 and if that gives way, there isn't much stopping a run higher in the pair especially if this trade dispute escalates further in the coming weeks/months.
