42 min ago
Moves in Mexican Peso, Canadian Dollar Signal Hopes Tariffs Won't Last
Price action in the Mexican peso and Canadian dollar suggests markets are hopeful U.S. tariffs won't remain in place for long, MUFG Bank's Lee Hardman said in a note.
The initial falls in the two currencies look relatively modest given the scale of tariffs, he said. This reflects optimism that the 25% tariffs imposed on Canada and Mexico Tuesday will be temporary, limiting trade and economic disruption, he added.
The negative impact of these tariffs will be partly offset by retaliatory measures and evidence of slowing U.S. economic growth, he said.
