Mexican peso volatility gauges soar ahead of tariff deadline
ReutersJan 31, 2025 10:05 AM
LONDON, Jan 31 (Reuters) - Mexican peso market volatility gauges continued to soar on Friday after U.S. President Donald Trump reiterated the previous day that he would impose 25% trade tariffs on both Mexico and Canada on Saturday.
Traders pushed one-week risk reversal options MXNSWRR=FN to their highest level since June at 4.3 and 1-week volatility contracts MXNSWO=FN to their highest since Trump's U.S. election win in November at 19.5 vols.
One-week implied volatility on the Canadian dollar CADSWO= hit its highest since October 2022.
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