The Mexican peso has lost 7 percent or so in the last three weeks against the dollar on expectations for an end to the Fed’s QE. For the peso, it looks like only more pain. While the Mexican economy should get a lift if the U.S. economy grows given their close physical and trade ties, higher U.S. rates or less U.S. stimulus is going to hurt the Mexican unit in currency trading. The dollar/peso rose above its 200-day simple moving average for the first time since November last week and now no resistance on that front. Speculators cut their bets on the peso last week to less than $5 billion from $5.5 billion the week before. Similar changes in the prior two years saw peso losses of 18 percent and 11 percent at the time. Investors must be looking to sell if the next drop is dramatic. Of course, that may entice risk takers to jump in and buy but few like to catch a falling knife and expect more downside before consolidation.