Mexico June CPI Softens, Bolstering Dovish Banxico Case
Mexico's June inflation data came in below expectations, bringing headline and core measures closer to Banxico's target, according to Societe Generale analysts. This supports the case for a more accommodative monetary policy stance.
USDMXN
Societe Generale analysts Dev Ashish and Brendan McKenna note that Mexico's June inflation figures surprised to the downside. Both headline and core inflation moved closer to the central bank's target, reinforcing expectations for a dovish shift by Banxico.
The data bolsters the argument for rate cuts, which could weigh on the Mexican peso in the near term. Markets will watch for further guidance from Banxico policymakers.
Source: FXStreet Forex News