USDNIXN is opening higher, though for Tuesday it seems more driven by the broader USD strength. That being said, the pair is nearly 50 cents higher since the central bank said it would cut currency hedge programs on Thursday and momentum feels intact. I like buying USDMXN on dips (if there are any dips). In forwards, basis can start to widen fast given the spot move and given that month-end selling is out of the way, In TIIE, note press reports on that the government will capitalise Pemex to allow it to pay debts. It will be interesting to see how market reacts, but global yields are higher so may TIIE may widen as well. - UBS Strategy
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