• The Mexican Peso treaded water on Tuesday following Monday’s 1.2% backslide.
• Banxico recently delivered a rate cut despite an uptick in headline inflation figures.
• Mexico’s central bank expects inflation bump to smooth out.

The Mexican Peso (MXN) held close to flat on Tuesday, paddling around 19.00 as Peso traders find their balance following a 1.2% drop in the MXN’s value against the Greenback. The Bank of Mexico (Banxico) recently cut interest rates by a quarter-point despite an uptick in headline inflation.

US Producer Price Index (PPI) figures released on Tuesday showed business-level inflation eased in July, softening the Greenback and giving the Peso a foothold as markets pivot to focusing on September rate cut expectations.