MXN has been a clear standout in that it is the worst performing currency this year, economists at Rabobank inform. USD/MXN is trading at 24.839.
Key quotes
“MXN hasn’t fallen because of people shorting the currency but because of people unwinding long positions. Speculative positioning in MXN is actually relatively flat right now.”
“It is hard to become bullish MXN when volatility remains high and the outlook for the world is so uncertain.”
“We don’t expect to see USD/MXN trading with an 18 handle again even looking beyond the Covid-19 impact, and in the short term we could even see a 26 handle as outflows continue and volatility remains high.”
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