🧮Leveraged Funds Cut MXN Longs At Fastest Pace Since March 2023: Cable FX Macro

• The recent volatility in the Mexican peso is now being reflected in the leveraged fund community, positioning was reduced aggressively to leave the net long a little over 26K contracts

• Mexican peso net long positioning has not seen a sharp drop like this since the March banking crisis, reductions of this magnitude compare to the Covid crisis (chart below)

• Hedge funds' adjustment came as we headed into the Banxico June meeting and the U.S. Presidential debate. While carry/vol ratio is now at more attractive levels relative to the beginning of the month, it is important to start looking at realized vol into the end of the week

• Read our Banxico preview here