The peso gains against the dollar: it is trading at 20.23
The peso closed the session with an appreciation of 0.33% or 6.6 cents, trading around 20.23 pesos per dollar, with the exchange rate touching a minimum of 20.1293 and a maximum of 20.4589 pesos.
In general, the appreciation of the peso during the session was due to a return to calm in global financial markets, mainly in the United States, where capital markets closed the session with gains, after retail operations were limited allowing the buyback of assets by larger market participants.
The Dow Jones closed with an advance of 0.99%, the S&P 500 with a gain of 0.98% and the Nasdaq with an increase of 0.50 percent.
The gains were also reflected in the last hours of operation in Europe, where most of the main indices closed with moderate gains.
Another factor that may have contributed to the optimism is that some positive economic indicators were released in the United States.
According to the anticipated GDP estimate, during the fourth quarter of 2020 the economy grew steadily at an annualized quarterly rate of 4.0%, accumulating a contraction throughout the year of 3.5 percent.
The peso
It is important to note that the decline in the dollar was 0.14% according to the weighted index, being moderate compared to the increase of 0.64% in Wednesday’s session, so greater volatility and upward pressures for the market cannot be ruled out. exchange rate.
Also, it is important to mention from a technical point of view that today there was a significant break in the resistance of 20.30 pesos per dollar, which opens the door to greater depreciation of the peso in the short term, especially if there is events that generate a greater perception of relative risk in Mexico.
Context
Among the factors that could generate upward pressure on the exchange rate in the short term are:
- The sustained advance of the pandemic in the country. In the last 24 hours until yesterday afternoon, about 18 thousand new cases and about 1,600 deaths were confirmed in Mexico.
- The health of the president could begin to generate upward pressure on the exchange rate, since no details have been given about its evolution.
- The discussion in Congress of the initiative to modify the Bank of Mexico Law. Discussion of the initiative is expected to begin in February.
In the session, the euro touched a low of 1.2081 and a high of 1.2142 dollars per euro. Finally, the euro peso touched a minimum of 24.4316 and a maximum of 24.7435 pesos per euro.
At the close, the interbank quotes for sale were located at 20.2294 pesos per dollar, 1.3726 dollars per pound and 1.2120 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.
Banco BASE
