Broadly speaking, cross-asset risk has welcomed the Fed's 50bps rate cut, this is being reflected in FX vols mostly offered on Thursday session. Despite the breathing room provided by the Federal Reserve, the options market is still pricing swings ahead for the Mexican peso
USD/MXN vol structure remains bid, the chart below pictures the change vs last month. There is particular interest in the 2m tenor as it now covers the U.S. election
Looking ahead, implieds remains above 15.0 into the 3m tenor, this is likely to keep carry traders on the sidelines as it reduces MXN attractiveness
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