Peso moderates advance after best appreciation in more than four months • Markets • Forbes México

0
6


The peso moderated its advance this Tuesday after the day before it recorded its best day in more than four months.

Today’s gain followed the release of figures showing that the US economy remained strong at the end of last year, fueling uncertainty about the pace of monetary easing by the Federal Reserve (Fed).

U.S. service sector activity accelerated in December, surpassing expectations, data shows. Meanwhile, job offers increased unexpectedly in November.

The dollar stood at 20.2952 pesos at the close, an appreciation of 0.07% compared to the previous session, according to data from Banxico. Yesterday it gained 1.75% against the greenback.

“The peso continues to be favored by speculation of a more favorable environment in the short term, considering rumors of Trump’s trade policies. Towards overnight, we would expect the peso to oscillate in a range between $20.26 and $20.38, considering the current trend and waiting to know the FOMC minutes tomorrow,” Monex stated in a report.

Lee: Peso retreats after session of big gains, awaiting US economic data; BMV advances

The peso appreciated almost 2% on Monday, encouraged by press reports that Donald Trump’s advisors would be exploring tariff plans that would only cover certain sectors considered critical.

The president-elect, who has repeatedly promised to impose 10% tariffs on global imports to the United States, later denied the report.

For now, the market’s attention is focused on the publication on Wednesday of the minutes of the Federal Reserve’s most recent monetary policy decision of December 18.

Read: Trump Effect: peso has appreciated the most in more than four months

Stock market advances 1.20%

The benchmark S&P/BMV IPC stock index rose 1.20% to 50,085.50 points, with a volume of 142.2 million shares traded, still below the daily average of 200 million in recent months, after the end-of-year holiday period.

The shares of Grupo Televisa led the increases, with 4.23% more to 7.88 pesos, followed by those of Gentera, specialized in credit banking services, which added 4.18% to 24.69 pesos.

In the debt market, primary Cetes yields fell in the weekly auction of government securities, after the central bank cut interest rates in mid-December.

The 28-day benchmark Cete rate was placed at 9.88%, 16 basis points below its previous auction.

With information from Reuters and Francisco Rivera

Get inspired, discover and share. Follow us and find what you are looking for on our Instagram!




LEAVE A REPLY

Please enter your comment!
Please enter your name here