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The peso is trading at 22.36 units per dollar

The peso closed the session with an appreciation of 019% or 4.2 cents, trading around 22.36 pesos per dollar.

In the session, the Global Risk Perception Base Indicator (PPI) stood at -140 units, indicating that there was an appetite for medium risk, contributing to the advance of the peso against the dollar.

It should be noted that the exchange rate traded most of the time with low volatility in a channel between 22.30 and 22.36 pesos per dollar, a sign that the market is waiting for the Banco de México monetary policy announcement scheduled for tomorrow at 1:00 pm, where an interest rate cut of 50 basis points to 4.50 percent is anticipated.

In the commodities market, oil prices closed higher, as a result of the publication of the weekly report of the Energy Information Administration in the United States.

The report observed that, in the week of August 7, crude inventories in that country contracted 4.51 million barrels (m bbl), bringing total commercial inventories to a level of 514.1m bbl.

This is the third week in a row that commercial inventories are down.

The WTI ended with an increase in its price of 2.62%, trading at 4270 dollars per barrel, while the price of Brent increased by 2.16% and closed trading at 45.46 dollars per barrel.

For its part, the US capital market posted strong gains. The S&P 500 closed 1.40% higher, touching a high of 3,387.89 points, just 5.63 points below the all-time high seen on February 19 of this year. The Dow Jones posted a 1.05% advance on the day, while the Nasdaq advanced 2.13 percent.

The peso and employment

Regarding economic indicators, in Mexico the number of IMSS insured as of July was released, showing a monthly reduction of 3,907 places, being the first job destruction for the same month since 2005.

Between January and July, a loss of 925,490 places accumulated, representing the largest decrease in insured persons for the same registration period.

Indicators of Banxico

From March to July, 1 million 117,584 formal jobs that are directly related to the health crisis due to the Covid pandemic have been destroyed19. Going forward, job destruction is likely to continue as a domino effect of the economic crisis on other industries is expected.

In the session, the peso-dollar reached a minimum of 22.2670 and a maximum of 22.4930 pesos per dollar in the interbank quotes for sale.

For its part, the euro touched a minimum of 1.1711 and a maximum of 1.1816 dollars per euro.

Finally, the euro peso touched a minimum of 26.2168 and a maximum of 26.4589 pesos per euro.

At the close, the interbank quotes for sale were 22.3570 pesos per dollar, 1.3022 dollars per pound and 11786 dollars per euro.

 

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE

 

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