⚠️Mexican Peso Implieds Rise Across Tenors: Cable FX Macro

• The Mexican peso posted a weekly decline of 3.1%, it trimmed losses of nearly 4.0%. This is the worst five-day period in the peso since late August. What happened? This may have to do with softer peso

• The graph below shows that 1w tenors had slipped below 15.0% a week ago, now they stand closer to 16.0%, a 1.2 vol increase on the week. Options markets now imply the peso moving around 1.0% on a daily basis over the next week, this isn't good for carry prospects. The 1m tenor, which covers the election, stands at 20.8%

• Next week's docket will be light on the dollar side of the equation, however, the MX side sees IGAE Economic Activity, retail sales, and bi-weekly CPI