In Mexico, the focus is on inflation data due out tomorrow. A better-than-expected report could put downside pressure on the peso, economists at Commerzbank report.

Everything centres on inflation

“We expect that for the time being, Banxico will continue its tightening course in line with the Fed. The market clearly agrees, and a glance at the TIIE rates suggests that a lot has already been priced in.”

“If tomorrow’s inflation data were to be much more favourable than expected the market might lower its expectations, which would put pressure on the peso.”