The peso cut its initial losses on Monday, while the stock market rebounded, approaching its all-time highs, after a volatile session marked by uncertainty following the weekend incursion of the United States into Venezuela.
Investors’ attention is also focused on a series of economic data that will be released this week, mainly from the US labor market, which could be crucial for the next steps of the Federal Reserve.
The peso was trading at 17.9136 per dollar in the final stretch of business, with a slight depreciation of 0.11% after having weakened in the morning to 18.0400 units, a key technical barrier, according to specialists.
“From my point of view, this level reflects stability rather than an aggressive strength of the peso,” commented Diego Albuja, market analyst at the digital broker ATFX Latam.
“This behavior suggests a consolidation scenario, with the dollar/Mexican peso moving within an approximate range between 17.80 and 18.05 in the short term. There are no clear signs of a directional breakout, so risk management remains key,” he added.
Specialists attributed the initial retreat of the currency to concerns about the stability of the region, after the president of the United States, Donald Trump, threatened to launch a military operation in Colombia, and suggested carrying out a similar act in Mexico to combat drug trafficking networks.
However, Mexican President Claudia Sheinbaum was skeptical on Monday about a possible intervention in her territory. “I don’t even think it’s something they’re taking very seriously,” he declared at his daily press conference.
At the local level, participants expect to know inflation figures for December and the minutes of the most recent Bank of Mexico meeting this week.
The benchmark S&P/BMV IPC stock index rose 1.38% to 65,026.95 points, according to preliminary closing data, interrupting a four-day streak of decline that began after reaching a record high of 65,882 units.
The rally was led mainly by firms in the mining sector amid strengthening metal prices.
The titles of Industrias Peñoles added 4.36% to 947.04 pesos, those of Grupo México, with 2.78% more to 175.0 pesos.
In the secondary debt market, the 10-year bond yield fell eight basis points to 8.90%, the same as the 20-year rate which ended the day at 9.46%.
With information from Reuters.
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