The FX Files – Holiday Cheer Amidst Thin Liquidity

FICC Strategy Reports

The MXN has proved the overnight star performer, indeed USD/MXN is
trading levels witnessed immediately ahead of recent Trump tariff threat. The catalyst for
the retreat are reports of a “wonderful”, and “very productive” conversation between
Trump and Mexican President Sheinbaum. The USD/MXN retreat underlines that tariff
threats are often merely part of a very blunt negotiating process.

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