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Cleaner MXN Positioning, Gradual Clarity On Vaccine Timeline

MEXICO

Despite the resurgent US dollar against G10 counterparts, EMFX also traded well yesterday as fresh bets were placed amid rallying equity indices. USDMXN gave up another 1% to trade back down to 20.10. Fairly lackluster price action today with a much more contained range of 20.07-20.16.

  • Desks have noted the much cleaner positioning in the pair which could provide impetus for another leg higher in the Peso.
  • Despite the Pfizer delays, Ministers used yesterday's press conference to highlight multiple shipments arriving in the coming days as well as pipeline deals that were completed on Monday. The gradual but more certain timeline of vaccine rollouts may provide a tailwind for local assets.

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