The Mexican Peso spiked up against the U.S. dollar in the European session on Monday, as the United States and Canada reached a trade deal to revamp North American Free Trade Agreement as a trilateral pact with Mexico.

The new deal called the United States-Mexico-Canada Agreement was reached ahead of midnight deadline set by the Trump administration.

"USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region," according to the statement.

The Mexican Peso advanced to 18.50 against the greenback, its strongest since August 9. If the Mexican currency rises further, 17.6 is likely seen as its next resistance level.

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