CFTC: Asset managers turn bearish on Mexican peso for first time in 18 months

The significance here is less the size of the position than the direction of travel: a positioning flip after 18 months of one-way sentiment suggests the macro story that sustained peso longs has lost its grip on this cohort of managers. It matters most for carry-oriented and EM currency books that had crowded into the trade, since a synchronized exit can amplify moves independent of fundamentals. The open question is whether this is a one-week sentiment blip or the start of a sustained repositioning — watch whether the net short extends or reverses in the next positioning update.