The peso closed the session with a depreciation of 0.38% or 8.6 cents, trading around 22.71 pesos per dollar, after hitting a maximum of 22.9097 pesos per dollar, ranking as the second most depreciated currency in the exchange market behind the South African rand which lost 1.04%.
The peso depreciation occurs in a mixed session, where the US dollar closed with little change closing at 1,179.46 units, which is equivalent to a 0.22 percent weakening.
Like the foreign exchange market, the rest of the financial markets also showed mixed results, as the market is waiting for relevant events that have the capacity to cause volatility.
Towards the end of the week, the publication of the monthly report on employment in the United States is expected, while tensions between the United States and China continue.
Also, by the end of the week, US lawmakers are expected to hold negotiations on the additional fiscal stimulus, prior to the August recess.
It should be noted that the greater liquidity of this new package can generate profits for some financial markets, which is particularly notable in the current scenario, where low interest rates reduce the opportunity cost of investing in financial markets and companies’ valuations in the models increase.
The peso and the gold
In the case of gold, monetary and fiscal policies that are designed to stimulate economic activity also generate upward pressure on its price, leading it today to hit a new all-time high of $ 2,009.61 per ounce.
Another factor that could be contributing to the depreciation of the peso is a technical movement, since in the sessions yesterday and today the resistance was pierced at 22.25 pesos and the 50-day moving average of 22.37 pesos.
Likewise, it may be generating a greater perception of relative risk on the Mexican economy, after the presentation of the growth of the gross domestic product of the second quarter, which showed a significant deterioration in the Mexican economy.
In fact, the Compound, Coincident and Advance Indicators System (SICCA) and the Cyclical Indicators System (SIC) were published today.
Indicators of Banxico
The coincident indicator of the SICCA was located at 75.7 points, its lowest level since August 1996 and in a recessive stage since November 2018. Likewise, the coincident indicator of the SICCA was located at 89.9 points, spinning 12 months below the threshold. expansion.
In the session, the peso-dollar reached a minimum of 22.5428 and a maximum of 22.9097 pesos per dollar in the interbank prices for sale. For its part, the euro touched a minimum of 1.1721 and a maximum of $ 1.1806 per euro. Finally, the euro peso touched a minimum of 26.5709 and a maximum of 26.9197 pesos per euro.
At the close, the interbank prices for sale were 22.7155 pesos per dollar, 1.3069 dollars per pound and 1.1798 dollars per euro.
Gabriela Siller; PhD
Director of Economic-Financial Analysis.