FX.co ★ Mexican Peso Remains Near 1-Year High

The Mexican peso stabilized around 18.55 per USD, pausing its advance after hitting a one-year high of 18.537 on July 23rd. This came as the US dollar made a partial recovery from its two-week low. Renewed optimism regarding US–EU trade negotiations and solid US jobless claims data reduced expectations for immediate Federal Reserve easing, contributing to the dollar's rebound. Domestically, however, mid-month core inflation surged to 4.25%, the highest it has been since May 2024. This persistent inflationary pressure diminishes the likelihood of a near-term interest rate cut by Banxico.