• The Mexican Peso is seesawing between tepid gains and losses ahead of the Banxico meeting on Thursday. 
• Mexican April inflation data out on the same day could also cause volatility. 
• Analysts at Trium Capital believe there is a higher chance of an interest-rate cut than markets are pricing in. 

The Mexican Peso (MXN) fluctuates between tepid gains and losses on Tuesday as many traders wait on the sidelines for key inflation data and the Bank of Mexico (Banxico) policy meeting decision on “super” Thursday. 

The positive market sentiment of the last few days, a factor benefiting the risk-sensitive Peso, finally unwinds with Asian stocks rounding out their session broadly lower. 

On the geopolitical front, sentiment improves after Hamas agrees to a ceasefire with Israel but then quickly sours on the news Israeli units have moved into the Southern Gazan city of Rafah. 

USD/MXN is trading at 16.88, EUR/MXN at 18.16 and GBP/MXN at 21.18, at the time of publication.