MEXICO: Trade Deficit Below Expectations In August

There has been little in the way of reaction in DSLs after Stephan van Baarle, leader of the ethnic minority interest Denk party, submitted a motion of no confidence in the demissionary cabinet of PM Schoof.

• Our political risk team noted that the prospect of the no confidence motion passing is nil, as the leaders of the far-right Party for Freedom (PVV) and centre-left/environmentalist GreenLeft-Labour Party have both said they will not back Schoof's ouster, and combined with the members of the two remaining parties of gov't, this secures a majority for keeping Schoof in office.
• This explains the lack of reaction in DSLs. 10s are ~0.5bp wider on the day, with Bunds outperforming all major EGB peers.

Former Fed General Counsel Scott Alvarez and other experts discuss likely outcomes for Lisa Cook's court challenge -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.

• EUR/USD: Aug29 $1.1600(E1.3bln), $1.1625(E4.0bln), $1.1700(E1.1bln), $1.1725(E1.1bln)
• USD/JPY: Aug29 Y146.50($1.1bln)
• EUR/GBP: Aug29 Gbp0.8563-80(E2.0bln)