Asset Managers Slash Mexican Peso Longs by the Most in 16 Months.

Institutional asset managers have significantly reduced their long positions on the Mexican peso, which was previously the best performing currency in emerging markets this year. The reduction in positions is due to increased global currency volatility, uncertainty over US monetary policy, and tensions in the Middle East. The Mexican peso's one-month implied volatility has risen, making it less attractive to hold long peso positions. The currency is currently the worst performing major currency in the world this month, and a breach of its 200-day moving average could lead to further depreciation. [Extracted from the article]