Economists at CIBC Capital Markets expect the USD/MXN pair to inch higher for the rest of the year.

Two 25 bps rate cuts in Q4

We maintain our call for two 25 bps rate cuts in Q4. Moreover, we restate our upward USD/MXN bias for the rest of the year with a 19.00 forecast for Q3 and a 19.50 estimate by year-end 2023. 

A deceleration in US growth coupled with our expectations of tighter MEX-US yield spreads remain the largest risks to MXN.