Consumer price inflation exceeded consensus expectations again, with the headline CPI advancing 0.3% MoM in January. The focus of the report was centered on the core segment where price gains accelerated to an above-consensus 0.4% MoM, as strength in the services segment more than offset still-persistent goods deflation.

We continue to expect the first Fed cut in May and the USD moving lower on Fed cuts is more a Q2 trade now.

The world outside the US is seeing more growth upgrades than downgrades which makes it less of a US exceptionalism trade and more of a US soft landing trade which is good for the MXN and CAD vs peers.