Was looking at treasury bill spreads between 1M MXN and USD and saw the ROC on MXN was getting quite big. It was 11% for 1 month coupons. Wild for such a developed country. As a result, USDMXN has gotten scorched.

Here is a chart of the 1month bill spreads vs MXN (green)

If Core PCE starts to come in hot and market starts to re-price pace of hikes, USDMXN could set up as a nice long given the DeMARK setups across the board.

Furthermore, with oil pricing in recession now, there are O&G MXN names completing big countdowns. VIST monthly for example.