USD/CAD traded sideways near 1.3725 in early Asian hours on Monday. Traders focused on the Middle East and on different policy tones from the Federal Reserve and the Bank of Canada. Risk-off trading supported the US Dollar against the Canadian Dollar as tensions rose between the US and Iran. The Jerusalem Post reported that the US is considering a ground operation to seize Iran’s island of Kharg, and a US official said the US military has accelerated the deployment of thousands of Marines and Navy personnel to the region.

Central Bank Policy Divergence

The Federal Reserve kept rates unchanged last week at 3.50%–3.75% and noted concerns about how higher oil prices could affect inflation. The Bank of Canada held its key overnight rate at 2.25% at its March meeting, and said the outlook is highly uncertain, with the Iran conflict adding risk to the global economy. Rising tensions also unsettled markets and lifted oil prices above $100 per barrel. Canada is a major oil exporter, and higher crude prices often support the Canadian Dollar. Given the tension between safe-haven demand for the US Dollar and strong oil prices, we see the USD/CAD pair stuck in a tight range. This uncertainty suggests that a significant breakout is becoming more likely as traders decide which factor is more important. The key level to watch is the 1.3750 resistance, which has capped gains twice in the last month. With conflicting signals, directly betting on direction is risky, so traders should consider using options to trade the expected rise in volatility. Implied volatility on USD/CAD one-month options has already jumped from around 6.5% to over 9.0% in the last two weeks, reflecting the market’s anxiety. Buying a straddle would allow a trader to profit from a large move in either direction.

Volatility Strategy Considerations

We have seen this kind of situation before, particularly looking back at the market reaction in early 2022. The initial geopolitical shock then caused a flight to the safety of the US dollar, which overshadowed the immediate benefit of soaring oil prices for the Canadian dollar. The current environment with US military deployments suggests this pattern could repeat in the coming weeks. The policy difference between the central banks also supports a stronger US dollar for now. With the Federal Reserve holding firm and worried about inflation, the 125-basis point interest rate advantage over the Bank of Canada is significant. Futures markets are now pricing in less than a 10% chance of a Fed rate cut before September 2025, providing a fundamental reason to hold US dollars. However, the longer oil prices stay above $100 per barrel, the more underlying support there is for the Canadian dollar. Statistics Canada data from late 2024 showed that energy products accounted for over 23% of the country’s total exports. For now, the fear in the market is outweighing this fundamental economic benefit for Canada. Create your live VT Markets account and start trading now.

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The Japanese Yen fell against the US Dollar in early Asian trading on Monday, even as the Middle East conflict moved into a fourth week with no sign of easing. The weekend saw fresh escalation linked to shipping routes and energy assets. US President Donald Trump gave Iran a 48-hour ultimatum to reopen the Strait of Hormuz to shipping or face the destruction of its energy infrastructure. Iran’s Islamic Revolutionary Guard Corps said it would completely shut the strait if Trump acted on those threats.

Middle East Tensions Lift The Dollar

The Jerusalem Post reported that the US is considering a ground operation to seize Iran’s Kharg Island, described as a key oil hub. The developments weighed on risk appetite and supported demand for the US Dollar over the Yen and gold. USD/JPY gains were described as limited by concern that Japanese authorities could intervene near 160.00. Another factor cited was the Bank of Japan’s hawkish interest-rate outlook, which was said to reduce downside pressure on the Yen. The Yen is influenced by Japan’s economic performance, Bank of Japan policy, yield gaps with US bonds, and market risk sentiment. The Bank of Japan used ultra-loose policy from 2013 to 2024, and a gradual shift away from it in 2024 has narrowed the 10-year US–Japan yield differential. Looking back at the events of late 2025, we saw an unusual situation where heightened Middle East conflict strengthened the US Dollar instead of traditional safe havens like the Yen. This pushed the USD/JPY pair toward the critical 160.00 level. This dynamic, where geopolitical risk supports the dollar, continues to define the trading landscape today.

Intervention Risk Near Key Levels

We should remember the Ministry of Finance’s actions back in the spring of 2024 when the pair first crossed 160. Records show they spent over 9 trillion yen to defend the currency then, establishing that level as a significant psychological and political barrier. This historical precedent makes the threat of intervention a very real cap on any further upside. The interest rate differential between the US and Japan, while still favoring the dollar, has narrowed from its peak in 2023. With the Federal Reserve holding rates steady through the start of 2026 and the Bank of Japan slowly normalizing its policy, the powerful carry trade that once drove the pair higher has lost some of its strength. This provides a fundamental anchor for the Yen that was previously absent. Given this ceiling created by intervention fears, selling call options on the USD/JPY with strike prices at or just above the 160 level could be a prudent strategy. This approach allows us to collect premium from the high implied volatility caused by ongoing global uncertainty. The position is profitable as long as the pair respects the intervention threat and stays below the strike price. However, we must watch for any major escalation that could trigger an overwhelming flight to the dollar, similar to what we saw during the initial market panic of March 2020. The CBOE Volatility Index (VIX) has been hovering around 17, which suggests traders are alert but not in a full panic. A sudden spike in the VIX above 25 could signal a rush for dollars that might overwhelm any initial intervention efforts by Japanese authorities. Create your live VT Markets account and start trading now.

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GBP/USD fell towards 1.3320 in early Asian trade on Monday, facing selling pressure as risk-off sentiment increased. Conflict in the Middle East supported demand for safe-haven currencies, including the US Dollar. The Jerusalem Post reported that the US is considering a ground operation to seize Iran’s Kharg island. A US official said the US military has accelerated the deployment of thousands of Marines and Navy personnel to the Middle East.

Strait Of Hormuz Tensions Rise

US President Donald Trump said on Saturday that Iran’s power plants would be attacked, starting with the largest, if the Strait of Hormuz is not opened within 48 hours. The Strait is a key route for energy shipments. UK Prime Minister Keir Starmer, Bank of England Governor Andrew Bailey and Finance Minister Rachel Reeves are due to attend an emergency meeting on Monday about the economic fallout from the war in Iran. The UK government confirmed the meeting. The Bank of England kept interest rates unchanged at 3.75% at its March meeting on Thursday, in line with expectations. Bailey said the conflict could raise inflation in the near term and linked energy price rises to restoring safe shipping through the Strait of Hormuz. We are looking back at the severe risk-off sentiment that gripped markets in March of 2025. The escalation of US-Iran tensions a year ago, which pushed GBP/USD toward 1.3320, created a spike in volatility that still echoes today. Those events serve as a critical reminder of how quickly geopolitical risk can dominate currency markets.

Oil Volatility And Hedging

The primary shockwave from the 2025 Strait of Hormuz crisis was in energy prices, with Brent crude briefly spiking over $150 per barrel before settling. Even now, with oil trading at a tense $95 per barrel, implied volatility in energy derivatives remains elevated compared to pre-crisis levels. Traders should consider buying call options on oil futures to hedge against the constant threat of renewed conflict in the region. As Governor Bailey warned in 2025, the energy shock did materialize, pushing UK inflation to a peak of 7.1% in the third quarter of last year. Although UK CPI has now fallen to 4.3%, it remains stubbornly high, forcing the Bank of England to maintain its bank rate at 5.0%, a level reached in late 2025. This environment suggests positioning through interest rate swaps for a “higher for longer” rate scenario from the BoE. The pound itself reflects this persistent strain, currently trading near 1.2510 against the dollar, significantly weaker than during the peak of the 2025 crisis. The economic fallout has created a fragile equilibrium, where high interest rates support the currency but a weak growth outlook weighs on it. This justifies using options strategies like strangles on GBP/USD, which profit from a significant price move in either direction. We remember the emergency economic meetings held by UK officials last year, and we are now seeing the statistical impact of that turmoil. The UK economy narrowly avoided a recession, but Q4 2025 GDP growth was a flat 0.0%, and recent business investment figures have been disappointing. This underlying weakness suggests that any renewed dollar strength could easily push GBP/USD towards its post-crisis lows, making protective put options a prudent strategy. Create your live VT Markets account and start trading now.

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EUR/USD fell to about 1.1560 in early Asian trade on Monday. The euro weakened against the US dollar as Middle East tensions increased volatility and reduced demand for riskier assets. Market participants moved to a risk-averse stance as the Middle East war escalated. US President Donald Trump said on Saturday the US would “obliterate” Iran’s power plants, starting with the biggest one, if Iran does not open the Strait of Hormuz within 48 hours.

Risk Aversion Returns

US Treasury Secretary Scott Bessent said on Sunday that sometimes you have to escalate to de-escalate. Iran warned it would strike energy sites in the Middle East after Trump’s threat over power plants and the Strait of Hormuz. European Central Bank officials are due to speak later on Monday. The ECB kept interest rates unchanged at its policy meeting on Thursday and said the war in Iran has made the outlook “more uncertain”. The ECB said the conflict created “upside risks for inflation and downside risks for economic growth”. This led traders to increase bets on ECB rate rises later this year. We are seeing a familiar pattern of risk aversion emerge as we approach the end of the first quarter of 2026. The geopolitical tensions described in late 2025, which saw the EUR/USD pair drop to 1.1560, provide a valuable playbook for the coming weeks. With the pair currently trading near 1.1850 amid renewed diplomatic friction in the Middle East, we should anticipate similar safe-haven flows into the US Dollar.

Options Strategies For Volatility

The key lesson from the 2025 Strait of Hormuz incident was the sharp spike in implied volatility. Traders should therefore consider buying volatility through derivatives rather than taking a simple directional bet. Using options like straddles or strangles on the EUR/USD allows a trader to profit from a large price swing, regardless of whether tensions escalate or suddenly resolve. Unlike in late 2025, when the European Central Bank was worried about upside risks to inflation, the current economic climate is different. February’s Eurozone HICP inflation data came in at a subdued 2.1%, a significant drop from the 4.5% peak seen during last year’s crisis. This makes the ECB less likely to talk about rate hikes now, potentially capping any rally in the Euro. We must also watch energy markets closely, as the 2025 events showed how quickly oil prices can react. Brent crude, which jumped 15% in a week during that period, is already trading above $95 a barrel on the latest satellite imagery of tanker movements. Call options on major oil ETFs could serve as an effective hedge against a similar upside shock that would weigh on European economic growth. Given that recent German industrial production data showed a 0.5% contraction last month, the Eurozone economy is more fragile now than it was in 2025. Therefore, put options on the EUR/USD offer a defined-risk way to position for downside. This strategy capitalizes on potential Euro weakness if the situation deteriorates, mirroring the flight to safety we saw last year. Create your live VT Markets account and start trading now.

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Mohammad Bagher Qalibaf, Iran’s parliament speaker, posted on Sunday that financial entities that fund the US military could be treated as targets. He said: “Alongside military bases, those financial entities that finance the US military budget are legitimate targets.” Qalibaf also referred to US government debt, stating: “US treasury bonds are soaked in Iranians’ blood. Purchase them, and you purchase a strike on your HQ and assets.” He added: “We monitor your portfolios. This is your final notice.”

Market Volatility Likely To Spike

In a separate statement on Sunday, Iranian Foreign Minister Abbas Araghchi said the Strait of Hormuz “is not closed”. He said ships were hesitating because insurers “fear the war of choice you initiated—not Iran.” Araghchi also said: “No insurer—and no Iranian—will be swayed by more threats. Try respect.” He added: “Freedom of Navigation cannot exist without Freedom of Trade. Respect both—or expect neither,” Araghchi said. We must prepare for a sharp rise in market volatility. The direct threats against financial institutions and key trade routes introduce a level of uncertainty that will likely push the VIX well above its current level of 14. We saw a similar, though less direct, geopolitical flare-up in late 2025 that caused the index to jump 40% in two days, a pattern that could easily be repeated. We must consider the combined effect of potentially higher energy prices and rising bond yields on broader equity markets. This dual pressure on corporate profit margins and valuation multiples creates a strong headwind for indices like the S&P 500. A defensive stance using index put options seems prudent until the credibility of these threats becomes clearer.

Key Trade Route Risk And Oil Shock

The statements concerning the Strait of Hormuz put oil prices directly in play. With around 21 million barrels of oil, representing nearly 20% of global daily consumption, passing through that chokepoint, any disruption creates an immediate supply shock. We should be positioned for a spike in Brent crude, making long call options on oil futures an attractive speculative position. The explicit targeting of US Treasury holders introduces a new risk premium to holding government debt. While a mass sell-off by foreign governments is unlikely, the fear of cyber or physical attacks on major financial players could pressure Treasury futures. This suggests that put options on Treasury futures could offer protection against a sudden, fear-driven move that pushes yields higher. Beyond broad market moves, specific sectors will be affected differently. The threat of strikes against headquarters and assets elevates the importance of cybersecurity, potentially boosting stocks in that sector. We should also watch defense contractors for increased investor interest given the heightened military posture this situation implies. Create your live VT Markets account and start trading now.

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In an NBC News interview on Sunday, US Treasury Secretary Scott Bessent said that “winding down” a war and “escalating” it are not mutually exclusive. He added: “Sometimes you have to escalate to de-escalate.” Bessent said President Donald Trump was leaving all options on the table. He also referred to a bombing campaign against military installations at Kharg Island, describing it as a nexus for Iranian oil supply, and said its future impact remained uncertain.

Market Risk Sentiment Shifts

Early on Monday, risk sentiment was weaker. The US Dollar Index rose back above 99.50 amid increased safe-haven flows. The statement that one must sometimes “escalate to de-escalate” signals extreme uncertainty for the market. This ambiguity, combined with the successful bombing of Kharg Island, creates a textbook environment for a spike in implied volatility. For derivative traders, this means the price of options, which reflects expected future price swings, is likely to rise significantly. We should anticipate further upward pressure on oil prices given that Kharg Island is central to Iranian supply. Brent crude futures have already jumped over 12% to near $110 a barrel, and traders could consider buying near-term call options to capitalize on potential further supply shocks. Looking back, we saw a similar, though shorter-lived, 15% spike in a single day back in 2019 after the Saudi Aramco facility attacks. This geopolitical tension is a clear risk-off event, which should weigh heavily on equity markets. Buying put options on the S&P 500 or the Nasdaq 100 offers a direct hedge against a broader market downturn. The VIX, the market’s fear gauge, has surged past 30, and purchasing VIX calls is a way to directly bet on increasing market fear in the coming weeks.

Long Volatility Trade Setup

As a result of the flight to safety, the US Dollar Index is strengthening, pushing towards the 100 mark. We can express this view by buying dollar call options or taking positions in USD futures. Simultaneously, gold is acting as a classic safe-haven, with spot prices climbing; call options on gold futures or related ETFs present another opportunity. The president leaving “all options on the table” implies the situation could either worsen dramatically or resolve suddenly. This makes long volatility strategies like straddles or strangles on key assets, such as major oil ETFs, particularly attractive as they profit from a large price move in either direction. We only have to look back to the market turbulence of early 2025 to see how quickly sentiment can reverse on a single headline. Create your live VT Markets account and start trading now.

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AUD/USD slipped towards 0.7000 in early Asian trading on Monday, as risk-off conditions lifted demand for the US Dollar. The USD firmed against the AUD amid rising Middle East tensions. The Guardian reported that on Saturday US President Donald Trump said the US would “obliterate” Iran’s power plants, starting with the largest, if Iran does not open the Strait of Hormuz within 48 hours. The report added that Iran warned it would retaliate by targeting all US-linked energy infrastructure in the Middle East if its power plants are attacked.

Risk Off Sentiment Drives Dollar Demand

The prospect of a longer US-Israeli conflict involving Iran supported safe-haven demand for the USD, weighing on the pair. This reduced appetite for risk-sensitive currencies such as the Australian Dollar. Support for the AUD came from Reserve Bank of Australia policy settings. The RBA raised its Official Cash Rate by 25 basis points to 4.10% at its March meeting, following a 25 basis point rise in February, making it the second consecutive increase this year. We recall this situation from early 2025, where conflict between risk-off sentiment and a hawkish central bank created significant tension for the AUD/USD pair. The US dollar strengthened on safe-haven demand from the Middle East threat, while the Reserve Bank of Australia was actively hiking rates, supporting the Aussie. This tug-of-war illustrates how geopolitical events can temporarily override fundamental monetary policy. Looking at today’s market, we see a similar rise in global uncertainty due to recent trade disputes between the US and the European Union. The CBOE Volatility Index (VIX), a key measure of market fear, has climbed 12% in the last two weeks to 19.2, signaling growing anxiety among investors. As we saw in 2025, such environments tend to drive capital towards the perceived safety of the US dollar.

Monetary Policy Backdrop Shifts

The key difference now is the monetary policy backdrop, which is less supportive for the Australian dollar than it was last year. With Australia’s latest quarterly CPI figure coming in at a milder 2.9%, the RBA has paused its rate hikes, holding the cash rate at 4.10% for the fourth consecutive meeting. In contrast, historical data shows that in a prolonged risk-off period, like the one seen during the 2008 financial crisis, the AUD/USD fell by over 35% in a matter of months. Given this context, derivative traders should consider positioning for potential weakness in the AUD/USD. Buying put options with strike prices below the current spot rate offers a defined-risk strategy to capitalize on a potential downturn. This allows traders to protect against downside movement driven by a strengthening US dollar, especially if the support from the RBA continues to wane. Create your live VT Markets account and start trading now.

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The war involving the US, Israel and Iran has entered its fourth week. US President Donald Trump said on Saturday the US would “obliterate” Iran’s power plants, starting with the largest, if Iran does not open the Strait of Hormuz within 48 hours. Iran said it would retaliate by targeting US-linked energy infrastructure in the Middle East if the US attacks its power plants. On Sunday, Iran’s Revolutionary Guards said the Strait of Hormuz would be fully closed if the US carries out threats against Iran’s energy facilities, and said companies with US shares would be “completely destroyed”.

Strait Of Hormuz Shipping Status

Iran’s representative to the UN maritime agency said the Strait of Hormuz remains open to all shipping, except vessels linked to Iran’s enemies. G7 foreign ministers said on Saturday they want an “immediate and unconditional cessation of all attacks by Iran”. They also said the G7 is ready to take steps to support global energy supply. Iran fired long-range missiles for the first time in the conflict and hit Dimona in southern Israel, near military bases and the Negev Nuclear Research Center. The IAEA said it had no indication of damage to the nuclear facility, and the BBC reported more than 160 people were injured, some seriously. The immediate focus is on crude oil, as the Strait of Hormuz is the chokepoint for roughly 20% of the world’s daily petroleum supply. We should anticipate extreme volatility, making long call options on Brent and WTI futures the primary strategy to capture upside from a potential supply shock. The cost of these options, or implied volatility, will be extremely high, reflecting the market’s fear.

Volatility And Hedging Approaches

We have seen this pattern before, and the potential price movement is significant. Looking back at the 1990 Gulf War, oil prices more than doubled in just a few months, and even the 2019 drone attacks on Saudi facilities caused a nearly 20% price jump in a single day. The current rhetoric from both the US and Iran suggests a far more severe disruption is on the table, which could eclipse these historical precedents. Beyond energy, we must look at the CBOE Volatility Index, or VIX, which is the market’s fear gauge. Expect the VIX to trade at levels not seen since the 2020 pandemic crash, likely pushing above 50 or 60. Trading VIX futures or buying call options on the index is a direct bet on continued market-wide panic and uncertainty. With such fear, we should be actively hedging our equity portfolios using index put options. Buying puts on the S&P 500 or Nasdaq 100 provides downside protection against a broader market sell-off, which is likely if energy prices trigger inflation and recession fears. These positions serve as insurance for a portfolio braced for conflict. Specific sectors will experience divergent outcomes, creating opportunities for pairs trades. We should consider buying call options on defense contractors and shipping companies that operate outside the Persian Gulf. Conversely, buying put options on airlines and cruise lines, which are directly hurt by high fuel costs and geopolitical instability, is a logical hedge. The elevated implied volatility presents a high-risk opportunity for premium sellers. Selling far out-of-the-money puts and calls on oil and equity indexes will yield significant income due to the market’s fear. However, we must be aware that a sudden escalation could lead to catastrophic losses, as this strategy depends on the conflict not worsening beyond current expectations. Create your live VT Markets account and start trading now.

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Silver (XAG/USD) fell by over 6.80% in late North American trading and was trading at $67.89. It was set to end the week down more than 15.70%, its second-largest weekly fall since the week that finished down 17.39% on 30 January. The price turned bearish this week after dropping below the 100-day simple moving average (SMA) at $72.55. It then fell under $70.00 and moved towards a six-week low of $65.52.

Broader Uptrend Still Intact

The broader uptrend is still in place while the price stays above the 6 February swing low of $64.10. The medium-term pattern remains a run of higher lows and higher highs. Momentum measures point lower, with the Relative Strength Index (RSI) dropping below neutral and moving towards oversold conditions. A fall below 30 and a quick move back above it may support a base if the RSI then makes higher peaks and troughs. For a rebound, XAG/USD would need to regain $70.00 and the 100-day SMA. Above those levels, the next resistance is $77.98, described as the cycle low-turned-resistance and the 3 March daily low. We remember the sharp silver plunge in 2025 when prices broke below $70, and we see a similar setup forming now as XAG/USD is currently trading at $68.50. Recent data shows a slight slowdown in industrial demand from China, with their latest manufacturing PMI dipping to 49.8, creating short-term headwinds. This echoes the sentiment from last year when the price fell towards its six-week low.

Options And Strategy Considerations

Given the current momentum, we should consider buying put options with strike prices around $65 to hedge against a potential re-test of the major support level identified last year at $64.10. Implied volatility has ticked up to 32%, suggesting the market is pricing in larger price swings in the coming weeks. This makes protective puts a prudent, if more expensive, strategy. However, the memory of 2025’s medium-term uptrend remaining intact suggests this dip could be a buying opportunity for those with a longer view. As the price approaches the mid-$60s, selling cash-secured puts or establishing bull put spreads below the $64 level could allow us to collect premium while setting a favorable entry point. Historically, silver has often found strong support after sharp sell-offs, such as the bounce seen in the spring of 2023 after a similar steep decline. The Relative Strength Index is again dipping towards oversold territory, currently sitting at 34, which is a condition that preceded a bottom in 2025. With key inflation data due out in the first week of April, we could see a significant price move, making a long straddle strategy attractive for capturing that volatility. This would involve buying both a call and a put option with the same strike price and expiration date. For a bullish reversal, our trigger remains a decisive move back above the $70 psychological level. If that occurs, we will look to close bearish positions and consider buying call options targeting the old resistance around $78. A break above the current 100-day simple moving average, now at $71.80, would serve as a secondary confirmation for this bullish stance. Create your live VT Markets account and start trading now.

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A Reuters poll said the Bank of Mexico (Banxico) is expected to keep its benchmark interest rate at 7% at its 26 March meeting, amid concerns linked to the Middle East war. If rates stay unchanged, it would be the second meeting in a row with no move, after Banxico cut rates 12 times since its easing cycle began.

Market Split Ahead Of Banxico Decision

In the survey, 16 of 28 economists forecast no change. A smaller group expects Banxico to restart rate cuts, even after its governing council raised inflation expectations. Eleven respondents predict a 25-basis-point cut to 6.75%, while one local analyst forecasts a 25-basis-point rise to 7.25%. The report was corrected on 20 March at 21:02 GMT to state that the expected cut level was 6.75%, not 6.25%. We are seeing a familiar situation unfold ahead of the next Banxico meeting, creating opportunities in the derivatives market. Last year, around this time in March 2025, there was significant disagreement on whether the central bank would hold its rate at 7% or continue its easing cycle. This division among economists created volatility that savvy traders were able to utilize.

Derivatives Strategies For Policy Surprise

Looking back at the March 2025 event, the majority expected a hold due to geopolitical concerns, yet a substantial minority, including major banks, predicted a 25-basis-point cut. Banxico ultimately held the rate, which caused a reaction in short-term interest rate swaps and the peso. That decision to pause followed 12 consecutive rate reductions, signaling a major shift in the bank’s approach. Today, with Mexico’s inflation proving stubborn and registering 4.40% year-over-year in February 2026, the market is again split on Banxico’s next move from its current rate of 11.00%. While the US Federal Reserve is signaling a potential pause, Banxico faces its own domestic price pressures. This mirrors the uncertainty we navigated last year, where inflation expectations were also being revised upwards. Given this divided outlook, traders should consider strategies that profit from a potential surprise or increased volatility. A long straddle on USD/MXN options, buying both a call and a put with the same strike price and expiry, could be effective. This position benefits from a significant move in the peso’s value, regardless of whether it strengthens on a hawkish hold or weakens on a surprise cut. Another area to watch is the TIIE swap curve, which reflects the market’s interest rate expectations. The curve is currently pricing in rate cuts by the second half of 2026, but if Banxico signals it will stay higher for longer, the front end of the curve will adjust. Traders who believe the market is too dovish could position themselves to benefit from short-term rates remaining elevated. For those simply looking to hedge, buying out-of-the-money puts on the peso provides a cost-effective way to protect against downside risk from an unexpected dovish turn from the central bank. This is a prudent move for anyone with long exposure to Mexican assets. The key takeaway from the 2025 playbook is that when consensus is weak, volatility is often the only predictable outcome. Create your live VT Markets account and start trading now.

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