📝Saw Late USD/MXN Hedge Fund Selling On Friday: UBS Strategy

USDMXN had a wider range on Friday with some stress ahead of the new month and general month end flows driving a bid that was further exacerbated by geopolitical pressures. Some US and Mexico versus China sentiment later in the session gave MXN some tailwinds after local end of day which was aided by late hedge fund selling of USDMXN. On the margin I think it's still plausible some solution comes before March 4 and the separately geopolitical tensions in Europe likely spell some rotation into LatAm yet again. 20.60/20.70 still looks like healthy fading levels to me.

FX swaps saw the usual net LHS interest in 1m while hedge funds and other real money were better RHS in the 3m. I am lightly biased paid in this shorter end basis. - UBS Strategy