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Indicative Evidence Of Bearish MXN Bets Fading

MEXICO
  • The post-payrolls pressure on the greenback prompted USDMXN to close towards recent lows around 19.80. Broadly unchanged for last week, focus remains on recent lows at 19.70 and the June lows at 19.60, as the surprise rate hike has rejuvenated some optimism for the local currency.
  • Indicative evidence of this comes in the form of investors cutting their bearish MXN positions for the first time in four weeks, according to CFTC data.
    • Non-commercial investors were short MXN to the tune of 19,454 contracts in the week ending June 29 vs 28,591 contracts on June 22.

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