Investing.com – The mexican peso jumped 2% against the u.s. dollar after the United States and Mexico have agreed on an agreement on migration to avoid duties on mexican products.
The pair USD/MXN was down 2% to 19,2234 to 09.35 am, the result of the information. The us president, Donald Trump had previously stated that it would impose import duties of 5% on all products mexican if Mexico tightened its borders.
The yen shelter has surrendered 0.4 per cent against the dollar to 108,65. The currency usually progresses in geopolitical tensions or financial.
During this time, the dollar index, which tracks the greenback against a basket of other currencies increased from 0.3% to 96,730. The index was under pressure earlier, after the publication of a weak report on the job.
The u.s. economy created 75,000 jobs in may, much less than expected, while wage inflation is reduced, reported the Department of Labor.
The data has reinforced expectations of a rate cut by the u.s. Federal Reserve. Analysts expected a reduction prior to the publication of the data, while the intensification of trade tensions between the United States and China led to concerns about the slowdown in global economic growth.
The Fed chairman Jerome Powell, said last week that the central bank “would be an appropriate way to support the economic expansion”.
The us Treasury secretary, Steven Mnuchin, said this weekend that the United States “would result in our plan” to impose more tariffs if the discussions with China weren’t going correctly.
The pair USD/CNY rose 0.4%, to 6,9334, even after the data showed that the surplus in China’s overall trade in may was significantly higher than expected.
In a note cited by Bloomberg on June 8, Goldman Sachs (NYSE: GS) said they expect the chinese currency to weaken beyond 7 yuan per dollar over the next three months due to the rise in u.s. rates.
However, capital controls effective will limit the depreciation of the yuan, said the investment bank.
The pair AUD/USD and the pair NZD/USD have both dropped 0.5%.