These Are the Risks That Could End the Mexican Peso's Big Run

  • Currency is the world’s best perfomer so far this year
  • Investors push long peso positions to a four-year high

Cartens Says Peso Correction Down to Policy Actions

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The band wagon carrying fans of the Mexican peso has become so crowded that it might be time for investors to consider finding another ride.

Emboldened by a firming domestic economy and fading concern the Trump administration will rewrite the rules of trade, investors have pushed the peso to the best returns in the world so far this year. But a triple-threat of risks looms: an early unwind of the Federal Reserve’s balance sheet, very crowded positioning and technical hurdles.