The peso gains 65 cents against the dollar for the week

Redacción Opportimes 3 julio, 2020

The peso closed with a weekly appreciation of 2.83% or 65.3 cents, trading around 22.40 pesos per dollar, hitting a low of 22.3816 pesos, its lowest level in 7 sessions. The appreciation of the peso was the result of a general weakening of the US dollar, as a consequence of the following factors:

Positive economic data for June, showing a gradual recovery in economic activity. Globally, the final reviews of manufacturing PMIs stood out, which in the Eurozone was adjusted from 46.9 to 47.4 points, while, in the United States, manufacturing ISM exceeded market expectations, reaching 52.6 points.

Likewise, in the United States, in the session on Thursday the non-agricultural payroll registered the creation of 4.8 million jobs, exceeding the market expectation.

Advances in the development of a vaccine against covid19, which may allow the normalization of economic activity in subsequent months. Pharmacists who showed progress in vaccine development are Pfizer Inc and BioNtech SE.

The peso and Covid-19

Despite the appreciation of the peso and risk appetite in the markets during the week, there are risks that can generate losses, mainly the increasing number of new cases of coronavirus, particularly in the United States, which has led several states to impose measures of confinement and reverse the reopening process that allowed economic recovery.

In the week, the peso-dollar exchange rate reached a minimum of 22.3816 and a maximum of 23.2296 pesos per dollar, the euro-peso reached a minimum of 25.1564 and a maximum of 26.1309 pesos per euro in the interbank prices for sale. For its part, the euro touched a minimum of 1.1185 and a maximum of $ 1.1303 per euro.

Indicators of Banxico