Overview

• U.S. producer prices jumped 0.9% in July, well above forecasts, sparking a rebound in the dollar index.
• Weekly jobless claims signaled a firmer labor market, reinforcing expectations of delayed Fed rate cuts.
• The peso weakened from post-CPI highs around MXN18.58 to trade near 18.75–18.89 per dollar by midday on August 14.
• Market-implied odds of a 25 basis-point Fed cut in September remain above 90% but have eased from the peak after the latest U.S. data.
• Mexican equities dipped and local bond yields rose as investors reassessed risk, while consumers face wider retail exchange spreads than interbank rates.