MTP Trade #12 2019
Buy USD vs MXN @ 18.945
Target 19.25 / 19.60
Product type: FX Spot
As we have stated, we like the way the USD is trading both technically but also from a fundamental view in that the growth rate in the U.S. is higher than most countries.
The interest rate market has priced in that the Fed will ease in 2019. We are not in that camp as we think the U.S. economy, equity markets and housing markets are performing.
Given all of the economic news and global political news that we will digest this week we think that EM FX may come under pressure.
For MTP #12 we bought USD vs MXN at 18.9450 or better. Target is 19.25 and then 19.60. stop level is 18.72