Mexican Peso Surges To Final Debate Highs But FX Hedgers Pile Into Protection

While overnight vol in USDJPY exploded higher as it appears more than one person is drastically hedging ahead of tonight's decision, the most-sensitive of financial instruments to a possible Trump victory is rallying back to its highest since the final debate.

Carry traders are aggressively hedging a possible Trump win - buying overnight protection in USDJPY.

As Bloomberg notes, overnight volatilities in major pairs rise to multi-week highs as U.S. election day arrives, with USD/JPY premium skewed toward puts, Bloomberg strategist Vassilis Karamanis writes.

But it seems Peso buyers are confident of a Trump loss...