Some banks are looking for a slightly earlier-than-expected rate cut from Banxico at Thursday's meeting. That is a little earlier than currently priced by the markets and presumably would see the Mexican Peso sell off a little. However, Mexico currently has very high real rates – 6% using current inflation – and a modest reduction looks unlikely to do too much damage. 

At the same time, MXN price action shows it is far too early to miss out on 11% implied yields in the Peso on the threat that Donald Trump may or may not be elected president in November.

We are still very positive on the Peso.