The latest data provided by the CFTC showed leveraged funds turning net short Mexican peso, this follows a constant pace of reductions since the June presidential election
Leveraged funds have not been short MXN since May 2023. Last week, the peso staged a rally, but a revival of its carry attractiveness is unlikely given the levels of implied vol
USD/MXN trading closer to 20.0 in the near term is more likely than a full run back to 18.0, unless volatility reverses sharply
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