Mexican Inflation and minutes in focus

USDMXN is expected to remain range bound during this week as global headwinds continue to weigh on EM currencies and markets price a delay in the FOMC rate liftoff. In the rates space, it is believed that the events for this week should support the recommendation of receiving the very short end of the TIIE curve. 

Not only Banxico's minutes (Monday) will focus the discussion on external developments as the FOMC did not hike in its last meeting and global growth continues to slide, but inflation for the month of September next Thursday should confirm that inflation in Mexico is running below the target and that FX pass-through continues to be muted. For the latter, a 0.42% m/m increase is expected (in line with market consensus) that implies a 2.55% y/y reading.