Mexico CPI rose to 7.62% year-on-year in February, below a forecast of 7.68% and 7.91% in January, while monthly core inflation was 8.29% versus a forecast of 8.35% and 8.45% in January. These prints might have missed, but were very much in line with the expectations of UBS chief Latin America economist Rafael de la Fuente. This should be supportive for Banxico to downshift to a 25bp hike at the next meeting - UBS revised its macro outlook on Wednesday.
Christopher Fitzpatrick in FX trading remarked that receivers should perform from here. The bias of the desk has been long EURMXN, but It has been hard to fight the traffic with the attractive carry/vol ratio continuing to see inflows to MXN. - UBS Strategy
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