
- Mexican peso and stock markets further extended their declines after suffering heavy falls overnight.
- Already concerned about the escalation in the US-China trade spat, investors went in full panic mode after Donald Trump rather unexpectedly promised to impose a 5% tariff on Mexican goods, effective from June 10.
- Among the majors, the Canadian dollar has remained the weakest with safe haven yen being the strongest, though profit-taking saw both come off their extremes at the time of writing.
- Volatility is likely to remain elevated next week, given this week’s big falls in the stock markets, as well as the upcoming data releases including NFP and central bank decisions.
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