The peso (19.98 vs. dollar) and manufacturing ISM in the United States

The peso closed the session with little change compared to Monday’s close, showing a depreciation of 0.12% or 2.6 cents and trading around 19.98 pesos per dollar, with the exchange rate touching a minimum of 19.8461 and a maximum of 19.9861 pesos.

The peso began to erase its overnight gains, after the ISM manufacturing indicator for May was published in the United States, which stood at 61.2 points, increasing 0.5 points compared to April, and indicating expansion for 12 consecutive months.

In the interior, an increase in demand was observed, with new orders growing 2.7 points and new export orders advancing by 0.5 points.

For its part, the employment index decreased by 4.2 points to 50.9 points, continuing to expand for the sixth consecutive month, although respondents mentioned difficulties in attracting workers.

Although the ISM data is added to the PMI indicators for Europe that show a sustained economic recovery to the month of May, they also give a positive outlook for the United States economy, generating speculation that the Federal Reserve could adopt a monetary stance less flexible.

The dollar-weighted index showed a moderate gain during the session of 0.05% and the rate of return on 10-year Treasury bonds rose 1.4 basis points to 1.61 percent.

The mexican peso

In the commodities market, energy prices closed with gains, with WTI advancing 2.46% and trading at 67.95 dollars per barrel, while the price of brent rose 1.76% and closed trading at 70.54 dollars per barrel.

The increase in the price of oil was supported mainly by optimism due to the publication of positive economic indicators, which increases the probability of a higher demand for hydrocarbon.

In the session, the most appreciated currencies were the Brazilian real with 1.41%, the Colombian peso with 1.25%, the South Korean won with 0.42% and the Polish zloty with 0.36 percent.

In the session, the euro touched a low of 1.2213 and a high of 1.2254 dollars per euro.

For its part, the euro peso touched a minimum of 24.2816 and a maximum of 24.4235 pesos per euro.

At the close, the interbank quotes for sale stood at 19.9791 pesos per dollar, 1.4152 dollars per pound and 1.2219 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE