Skip to content
Subscriber Only

Hedge for Anything Spurs Mexico Peso Shorts Before Brexit Vote

  • Correlation between peso and pound at the highest since August
  • Brexit fears bubble up in peso market used as proxy for risk
Updated on

Traders have found yet another use for shorting the Mexican peso -- as a hedge for the risk of a Brexit.

With the ballot on the U.K.’s membership in the European Union just a day away, the peso is the most in sync with the pound in almost a year. It tumbled when sterling fell in May as odds showed a higher chance Britons would vote to leave, before rallying alongside it for three of the past four days as polls showed the “Remain” campaign gaining steam.