This is an interesting chart
If you like charts, you have to like USD/MXN. The peso is the second-best performing global currency today, trailing only the Brazilian real.
To give you a sense of the magnitude of the moves, today's drop is 1.7%. The volatility here is incredible and now there's a triple top or what could be a head-and-shoulders pattern.
In my long view, I think Mexico is the big winner in the de-globalization game. The US is going to put up all kinds of roadblocks to China in the years ahead and factories are going to re-shore but they're simply not going to set up in the US, it's way too expensive for anything that's labor-intensive.
Instead, they're going to be building factories in Mexico. That's nothing new but I think Mexico is overdue for some good government and Mexicans are sick of gang-related violence.
For now this chart could go either way but if it busts out or breaks down, I expect a move that lasts for days.
