MXN sits just above the day's lows.....>

MEXICAN PESO: MXN sits just above the day's lows against the USD, with the

Mexican currency slipping in sympathy with what's expected to be a painful open

for the ARS following primary election results this weekend in which the current

President Macri surprisingly lost. Today's best levels of 19.7754 in USD/MXN

marks the best print since early June (just after Trump tariff tweets sent the

MXN spiralling) with 19.8799 the next target for USD/MXN bulls.

-Today's move in spot has helped underpin a rise in MXN implied vols, with the

1m measure rallying north of 11 points to fresh multi-month highs.

-Focus remains on the ARS open in just under 20 minutes, with moves there likely

to dictate sentiment toward broader LatAm FX.

-Regional sell side analysts already see the ARS falling at the open, with BTG

Pactual seeing USD/ARS rallying as much as 25% Monday. Similarly, analysts at

Amherst Pierpoint are warning that markets will likely panic.

-USD/ARS closed on Friday at 45.3134. A 25% drop in ARS would see the pair above

55.00, hitting fresh all time highs.