🐍🦅Mexican Peso Posts Worst Week Since The Pandemic: Cable FX Macro

• We have seen volatility rise in MXN denominated assets following the Sunday election results. Morena party supermajority has increased the peso's risk premium while traders look for an alternative to express carry trades

• The 7.56% decline in the peso is the worst five-day performance since the March 2020 Covid crisis hit. USD/MXN extended gains on Friday session to see a fresh YTD low at 18.3946

• Peso moves reflect traders were not expecting the election results seen on Sunday night. Looking back to 2019, this week represents losses beyond 2 sigma for the peso, this magnitude of weakness has been recorded only twice since the pandemic