Peso closes in 2023 at 18:15: Monex Grupo Financiero

He Mexican peso fell this Thursday at the start of operations due to global strengthening dollar, while the stock market declines for the second day in a row due to the caution of investors awaiting the announcement of monetary policy Federal Reserve US (fed for its English abbreviation) next week.

The session was marked with weekly data Job V USA better than expected, while at the local level it was found that the activity economic according to preliminary data, in June it grew by 4% year on year.

At the same time, the national currency traded at 16.8120 per dollar with a depreciation of 0.63% compared to the reference price of the news agency. Reuters on Wednesday, though it continued to hover around its highest level in 7 1/2 years. On Tuesday, the weight hit 16.6884 units, a level not seen since 2015.

In accordance with Monex Financial GroupWhile conditions for the peso continue to be favorable in the short term in the long term, there are several risks to its rise, including an accelerated narrowing of the spread between Mexico and the US and the recession in that country.

Thus, he calculated that the peso is one of the currencies Global with the best performance against the dollar so far this year – will close at 18.15 per dollar in 2023, down about 8.5% from current levels.

“The next catalyst for the currency will be forward-looking guidance that the Fed will release next week to assess whether the end rate of the current bull cycle has been reached or whether the FOMC’s bias in favor of continued monetary tightening remains,” the firm said in a research note.

For its part, the reference stock index S&P/BMV fell 0.37% to 53,541.37 as the market is also alert to the start of the second quarter corporate reporting season.

Grupo Financiero Banorte, which manages the largest bank owned by Mexican investors, is expected to publish its quarterly results after the close of trading. His titles fell 0.53% to 150.07 pesos before the numbers were released.

In the debt market, the 10-year yield rose three basis points to 8.77%, while the 20-year yield rose one basis point to 8.88%.

Source: Aristegui Noticias

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