Reported 8 months ago
Hedge funds significantly decreased their bets on the Mexican peso following an election surprise that disrupted markets and raised concerns about the future of this previously popular currency trade. Leveraged funds cut their net long position by 56,709 contracts to 27,304, the third-largest reduction on record, while asset managers lowered their bullish wagers to 76,520 contracts, the lowest in around two years. This move came after the peso declined over 6% against the US dollar post-election, with traders moving away from profitable carry trades due to uncertainties regarding the incoming government's policies, particularly potential judicial reforms and anti-market measures.
Source: YAHOO