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MXNJPY Briefly Extends Intra-Day Decline To 5%

MXN
  • As major central bank repricing continues, the reversal of the popular MXNJPY carry trade has been extending significantly on Monday. Intra-day losses were briefly exacerbated to over 5%. The move is close to completing an entire reversal of the February – March upswing and immediate focus is now on 6.8464, the February lows.
  • With the US treasury 2-year yield briefly falling below 4% and the lowest level since early October 2022, pressure on emerging market currencies and LatAm FX has been extending ahead of tomorrow’s US CPI data release.

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