At the time of writing, the USD/MXN pair trades at 17.18 after refreshing five-month lows at 17.09. USD/MXN tumbles as Mexico’s inflation approaches targetThe Mexican economic docket showed that inflation eased to a six-year low, from 3.37% to 3.12% YoY in July, according to INEGI, the National Statistics Agency. Core inflation, which strips volatile items, was 3.95% YoY, slightly exceeding forecasts of 3.94%. Should inflation continue its downward trajectory, it could end 2026 below Banxico’s 3.5% forecast for headline and underlying inflation in 2026. The data support the Fed’s pause on rate hikes, but the Unemployment Rate fell from 4.2% to 4.1%.