🐍🦅Leveraged Funds Add Mexican Peso Bullish Bets: Cable FX Macro

• The latest weekly CFTC data showed leveraged funds adding to Mexican peso contracts, the net long position increased to 51.4k, the highest since March 2023

• MXN/USD saw its best levels since mid-2015 on Monday session, we had previously noted the peso leading global FX this year as it extended 2023 gains

• The peso defies monetary policy divergence, Banco de Mexico started its easing cycle months ahead of the Federal Reserve. However, the LatAmFX space has seen Brazil and Chile lower policy rates since last year. From a rate spread perspective, MXN is still holding to an attractive premium