USD/MXN has dropped below the 20 level. In the opinion of analysts at ING, the pair could test 19.50 in the not too distant future. 

Peso remains a good candidate for the carry trade

“MXN implied yields through the 3m forwards are near 10% and with Banxico targeting a stable currency – by keeping a 625 bps rate spread over the Fed – the peso should see good demand now. USD/MXN could briefly see 19.50.”

“Expect Banxico to match the next Fed increase (50 bps or 75 bps) in September. Access to US gas prices is an advantage for Mexico.”