MEXICO: Government Seeking Auto Tariff Exemptions, Feb IP Due Today
Apr-11 09:23
- The Mexican peso is trading in a tighter range so far on Friday, with USDMXN remaining in familiar territory around 20.50. After the big swings seen in recent days the pair is currently just 0.3% higher on the week.
- Speaking overnight, Deputy Economy Minister for Trade Gutierrez said that the government is seeking tariff exemptions for the autos sector. He said that they are looking for some production processes to be counted in the content considered of US origin to increase exemptions. He also expects the USMCA to be strengthened in the upcoming review but said that it must include conflict resolution mechanisms.
- Separately, President Sheinbaum said that she will speak with the US administration to resolve differences over a water treaty involving shipment of water to Texas, that President Trump has previously threatened tariffs over.
- Today, industrial production figures for February are due at 1300BST(0800ET), with analysts expecting annual growth to slow further, to -3.5% y/y, from -2.9%, on the back of weakness in the manufacturing sector. The data follow yesterday’s Banxico minutes, which highlighted the need for lower interest rates amid global growth concerns, with further 50bp cuts on the agenda ahead.
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FOREX: FX Exchange traded Roll pace
Mar-12 09:17
Expiry Next Monday the 17th.
- EUR: 36%.
- GBP: 33%.
- JPY: 45% (above pace).
- CHF: 32%.
- CAD: 33%.
- AUD: 42%.
- NZD: 44% (above pace).
- SEK: 54% (above pace).
- NOK: 47% (above pace).
EURIBOR OPTIONS: Put fly buyer
Mar-12 09:12
ERJ5 97.6875/97.62/97.5625p fly, bought for 0.75 in 10k.
BUNDS: /SWAPS: Modest Bid On Green's Reaffirming Fiscal Position Fades
Mar-12 09:05
A modest bid in German bonds on the back of Habeck reaffirming the known stance of the Greens when it comes to debt brake reform.
- While the Greens continue to voice their well-documented concerns surrounding defence spending, the door to fiscal negotiations and a deal in the immediate term seems to remain open.
- That explains the limited market reaction in German paper, with the major futures contracts already back from their knee-jerk highs.
- Long end ASWS vs. 3-month Euribor similarly muted, widening by ~0.5bp before fading.
