He mexican peso is appreciated against dollar this Monday morning. The local currency gains at levels below 18 units, not seen since July of last year. His movement comes in the face of the weakness of the greenback, awaiting key figures in the United States.
He exchange rate spot It is located at the level of 17.9839 units per dollar. Compared with a data of 18.0050 units, with that of the LSEG reference price on Friday (without data from Banxico due to holidays), it means an advance for the peso of 2.11 cents or 0.12 percent.
He dollar price It moves in a range between a maximum of 18.0164 units and a minimum level of 17.9696. He Dollar Index (DXY), from the Intercontinental Exchange, which compares the US currency with six reference currencies, fell 0.20% to 98.20 points.
“Today, the Mexican peso is favored by the decline of the US dollar, as well as by a resolution of tensions between Mexico and the United States, thanks to the agreement that ends a dispute over water,” analysts at Monex Grupo Financiero stated in a note.
The market awaits the publication of key figures on the labor market and inflation in the United States this week. The data will help anticipate the path that rates will follow in the first quarter after the cut announced by the Federal Reserve on Wednesday.
On the local side, the week will be marked by some relevant economic data, but above all by the latest decision this year from the Bank of Mexico. A 12th rate cut is widely expected amid signs of weakness for growth.
For now, it is expected that later in the day the monetary authority will release the results of its expectations survey of private sector specialists. The market will be attentive to the update of its projections of GDP, inflation, the exchange rate and interest rates.
The technical outlook favors the peso, according to a note from Grupo Financiero Banorte sent to clients. “We hope that the recovery (of the peso) will prevail, after piercing the psychological level of 18 units.” Analysts defined 17.87 as the next relevant zone.
