Mexican Peso, Canadian Dollar Surge as President Trump Announces New Trade Deal with Mexico

The U.S. dollar took a tumble today as President Trump announced a trade deal with Mexico that would replace NAFTA.

The Dollar Index tumbled to a 16-day low of 94.60, while the Mexican peso was up as much as 1.56% on Monday against the dollar, trading at 18.60 pesos to the dollar.

“We’re going to call it the United States-Mexico Trade Agreement, and we’ll get rid of the name NAFTA.,” U.S. President Trump explained.

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The Canadian dollar also gained on Monday, trading as high as 1.2953 against its American counterpart, after President Trump and President Pena Nieto made positive remarks on upcoming trade negotiations:

“It is our wish, Mr. President, that now Canada will also be able to be incorporated in all this. And I assume that they going to carry out negotiations of the sensitive bilateral issues between Mexico — rather, between Canada and the United States.,” said President Nieto.

"Canada will start negotiations shortly. I’ll be calling the Prime Minister very soon. And we’ll start negotiation, and if they’d like to negotiate fairly, we’ll do that.," said President Trump.

Peso banknote photo: 1