A Case For USDMXN
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Not selling anything. Just Macro trends, DeMARK indicators and some stats.
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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.
