📝 Taking Profit On USD/MXN Short Given Headline Risk: UBS Strategy

USDMXN sold off all afternoon after rejecting 19.17 resistance for the third time In as many days. The desk looked at playing USDMXN from short side from that moment, and at this point, given all the headline risk that is still prevalent, would be taking profit as the New York session ends around 18.77. The desk now likes buying a further dip to the 50-day moving average at 18.65 and then more at the previously pivotal 18.50 level. Conversely, the desk would fade the 19.15 area, again. This Is still a market very prone to headline shocks.

In rates, ly finally rebounded a bit as ly US did the same. I think the curve Is much more fairly priced here, and still like being paid 9m1y in FX or in TIIE.

- UBS Strategy