Royal Bank of Scotland - "Our analysis of IMM data suggests long positioning in MXN is at extreme levels (above 2 standard deviations against a historical average) which may trigger a corrective move higher in USD/MXN. This is more likely in the event of a negative external trigger such as unfavourable noise surrounding Europe. In particular, we are concerned about market complacency around the Italian elections next week. Absent an external trigger, we still believe there is scope for moderate positioning reduction, and therefore MXN underperformance, in a mixed risk environment.
Spot ref: 12.756; Stop: 12.600; Target: 13.000"