Mexican Peso Rally Shows Traders Are Betting a Nafta Deal Is Near
- Key issues still said to remain; Canada hasn’t rejoined talks
- Potential for large peso gains if deal reached: Wells Fargo
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Traders are taking an optimistic view on Mexico’s peso amid conflicting reports about the outlook for trade talks with the U.S.
The currency strengthened as much as 1.1 percent Wednesday as investors bet on a positive resolution to discussions over a revamped North American Free Trade Agreement. Bloomberg News reported that the U.S. and Mexico are moving closer to a deal despite key sticking points in negotiations, overshadowing comments from a U.S. Trade Representative official who said that major Nafta issues remain and cautious signals from Mexico’s incoming Nafta negotiator, who also sought to walk back expectations.