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Positioning May Indicate Market Caught Short MXN

MEXICO
  • Prior to the surprise Banxico rate hike and strong weekly performance in MXN, investors increased their bearish Mexican peso positions for a third straight week to the highest since March 16, CFTC data shows.
    • Investors were short MXN to the tune of 28,591 contracts in the week ending June 22 vs 23,930 contracts on June 15 with leveraged funds and institutional investors both reducing their long peso positions.
  • That President López Obrador is proposing an electoral reform three weeks after "impeccable" elections were held is "unbelievable," according to the head of the National Electoral Institute (INE).
    • He said that reform might not "strengthen what we have today" but rather weaken the system that has been "diligently" built over years.

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