Ella 
USD/MXN attempted to regain recent losses and was trading higher around 17.3500 during the Asian session on Wednesday. However, USD/MXN suffered losses due to weak inflation data from the US Bureau of Labor Statistics (BLS) on Tuesday.
The U.S. consumer price index (CPI) fell to 3.2% in October, below expectations of 3.3%. U.S. core CPI rose to 0.2%, missing expectations of 0.3%. The weak inflation data further supported the consensus view that the U.S. Federal Reserve is leaning toward ending its interest rate hike cycle. This triggered a decline in U.S. Treasury yields, which weakened the U.S. dollar.
Bank of Mexico (Banxico) President Victoria Rodriguez Ceja mentioned that there is room to discuss interest rate cuts due to the slowing inflation outlook. She mentioned that any easing of monetary policy is likely to be gradual and will take a data-dependent approach in decision-making.
Mexico’s inflation rate rose 4.26% year-on-year in October, lower than expected. Mexico’s central bank has committed to a 3.0% inflation target by 2025, suggesting policy rates will remain at current levels for quite some time.
