MXN Looking Bad Technically

After calling the end to the carry trade in early August (see our online service, August 9, 'Carry Trade Over For Now') the currency rout for the Mexican peso and Brazilian real has continued apace, with both units selling off aggressively against the US dollar. In Brazil's case the depreciation has been more pronounced, down 13.3% since August 9, compared to 9.7% for the peso over the same period, largely because of the unexpected shift from monetary tightening to monetary loosening between in late August.

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