Mexican peso implied volatility in the 3m tenor is extending a move higher on Thursday session to mark a fourth consecutive session of gains
MXN 3m tenor now ticks at 13.03% and is above its 1-year average, MXN implieds now stand as only major currency to read higher than its average
The development does not support the carry trade, and it reduces the peso's attractiveness via carry/vol
As of time of writing, USD/MXN premiums stand at +284 basis points favoring implied over historic volatility
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