In the minutes of the Central Bank of Mexico (Banxico) from the June meeting, it became clear that the Board is in no hurry to cut interest rates. The majority of the Board felt that it was too early to discuss rate cuts. This is good news for the MXN, which should continue to be supported by high real interest rates.

Inflation data for June is expected to show a further decline in inflation. Especially against the backdrop of Banxico's unchanged restrictive stance, weaker results should provide support for the MXN.