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USD/MXN remains bid following the......>

MEXICAN PESO
MEXICAN PESO: USD/MXN remains bid following the particularly firm performance
Friday after Trump caught markets off guard by threatening tariffs on goods
flowing from Mexico to the US and demanding tighter immigration rules in
response. USD/MXN bulls eye Friday's highs at 19.8279 ahead of 19.9279 (the
61.8% Fib for the 20.6572 - 18.7480 move). Despite some expectations of a bounce
in MXN as Mexican officials continue to seek clemency through further dialogue,
Trump double-downed on his threat over the weekend, stating he is "okay" with
tariffs if US-Mexico negotiations collapse.
-Unsurprisingly USD/MXN vols remain bid across the curve, but the 1m measure is
still considerably below both the YTD high at 13.83 points and the 2018 high at
18.69 points. Some confidence may be being read into AMLO's comments today
stating he is "optimistic" that a deal can be reached with his US counterparts.
-USD/MXN options volumes are higher than average (as was the case on Friday)
with the market opting for USD/MXN puts (put/call ratio today sits at 3:2).
18.75 put strikes in particular have garnered attention of the larger trades
today.

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