🐍🦅Mexican Peso Outperforms Tariff Risk Off Session: Cable FX Macro

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• Puzzling price action on cross-assets have pushed desks to write about a regime shift in markets, de-dollarization and Mar-A-Lago Accord type of chatter.

• Risk is hit on the day, S&P 500 futures trade off lows, but hold to session losses above 4.0%. However, the MXN is outperforming the high-beta complex. USD/MXN is down 1.2% on the day as it outperforms its USMCA peer CAD on the tariff announcement.

• We have not got peso flows published yet, however, the desk at UBS pointed out at the fact that 50% of Mexican imports to the U.S. are protected by the USMCA, this compares to 38% of Canadian imports. This has left Mexico in a competitive advantage relative to RoW manufacturers.

• Movers on Thursday include UBS' Tariff Loser basket, down 15.5% on the day, it records its worst session on record.