Overview
- July U.S. CPI rose 0.2% month-on-month and 2.7% year-on-year, undercutting forecasts and pushing the DXY dollar index lower.
- Interbank benchmarks and Banxico/DOF reference rates place the peso around 18.66 per dollar, while retail windows continue to quote sell prices near 19.0–19.6.
- Short-term futures and the CME FedWatch tool assign over a 90% probability to a 25-basis-point Fed rate reduction in September.
- After initial gains on the CPI surprise, the peso experienced intraday swings and at times retraced, closing near 18.64 on August 13.
- Market participants are now focused on this week’s PPI and jobless-claims releases plus next week’s Jackson Hole symposium for fresh Fed guidance.