The peso gains 12.7 cents against the dollar and pierces a barrier of 20.00

The peso closed the session with an appreciation of 0.63% or 12.7 cents, trading around 20.03 pesos per dollar and touching a low of 19.9925 pesos.

From a technical point of view, the level of 20.00 pesos per dollar has become a key support that has not been able to be pierced with force.

The foregoing shows that the positive news about the effectiveness of the Covid19 vaccine or the probable peaceful transition from the government of Donald Trump to the government of Joe Biden, are events that have already been discounted by the exchange rate.

Although there is additional room for an appreciation of the peso, the market continues to wait for new fiscal stimuli to be approved in the United States as the current outbreak of coronavirus cases globally slows down, which for now has also limited the appreciation of the peso.

In the wide basket of main crosses, the Mexican peso ranked as the tenth most appreciated currency.

The peso and oil

The most appreciated currency was the Norwegian krone with an advance of 1.48%, followed by the South African rand with an appreciation of 1.36% and the Brazilian real with 1.09%, the three currencies of economies that produce raw materials and it is that today the WTI price continued to rise, closing at 44.84 dollars per barrel, showing an advance of 4.13 percent.

Likewise, the price of oil has risen in six of the last seven sessions and accumulates an increase of 11.84% in that period, while in the month it accumulates an increase of 25.4 percent.

As a result, the Norwegian krone accumulates an appreciation of 6.63% in the month, while the rand has advanced 6.40% and the Brazilian real 6.43 percent.

The increase in the price of oil is mainly due to the expectation that the availability of a vaccine against Covid19 will allow the accelerated recovery of the demand for energy.

In the capital markets, most of the main indices globally posted gains of more than 1%. In the United States, the Dow Jones, which includes companies considered cyclical, advanced 1.54%, reaching a new all-time high of 30,116.51 points.

Vaccinations

Although negative news about the advance of the coronavirus continues to be released in the short term, the attention of the markets, particularly that of capitals, has focused on 2021 and the expectation of an accelerated economic recovery thanks to the availability of vaccines that are pending for approval.

During the session, the publication in Mexico of inflation for the first fortnight of November stood out, reaching a biweekly rate of 0.04%, being the lowest for the same period since the series began.

At a year-on-year rate, inflation was 3.43%, after being above 4% in four of the last six fortnights.

Indicators of Banxico

With the inflation published today, the expectation for the end of the year is modified from 3.85% to 3.70% and there is room for another cut in the interest rate in the next three months.

In the session, the exchange rate touched a minimum of 19.9925 and a maximum of 20.1671 pesos per dollar, the euro touched a minimum of 1.1837 and a maximum of 1.1894 dollars per euro. Finally, the euro peso touched a minimum of 23.7484 and a maximum of 23.9213 pesos per euro.

At the close, the interbank quotes for sale stood at 20.0280 pesos per dollar, 1.3360 dollars per pound and 1.1890 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE