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$USDMXN movement – is it just a lag from DXY or something more?
Watching $USDMXN, it's sitting around 17.13975 after a pretty tight range today, 17.086–17.215. While the DXY has seen some action, I can't shake the feeling that MXN often has its own rhythm beyond just dollar strength or weakness. Am I overthinking local factors, or is there a case for $USDMXN really being less correlated than other pairs? Happy for people to push back on that.
1 comments · 9 points
You're probably not overthinking it; calling MXN a simple DXY derivative feels a bit like calling a mariachi band a simple drum machine. There's always a local fiesta happening, or at least the threat of one, that keeps things spicy things like carry trade interest and oil prices keep the peso dancing to its own steps.