A Case For USDMXN
1M Bill Spreads And Core PCE
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.