🐍🦅Mexican Peso Leads FX In 1Q 2024: Cable FX Macro

• As we head into the last trading sessions of the first quarter, the Mexican leads the FX world. When using the dollar as base, the MXN is capturing a performance of less than 1%, however, most major currencies are declining YTD

• Regional peers like the Brazilian Real and the Chilean Peso have turned lower vs the dollar, the latter is down 7.4% in 1Q

• A measure of real FX rates points to the MXN reaching its highest level in more than 11 years. Deutsche Bank's MXN REER Index has recently extended above 2023 highs

• The move has left the peso among the most overvalued currencies in the majors space. A ranking calculated by Bloomberg shows the peso trading 2 standard deviations above its 10-year average (bases on its Real Effective Exchange Rate)