Financial markets await economic and legislative information

Mexico City. The Mexican peso strengthened against the dollar again on Monday, in light of the interest rate cuts in the United States, as well as everything related to what will happen in the Senate with the reform of the Judicial Branch and the moderation of inflation in Mexico.

The Mexican currency registered a daily appreciation of 0.52 percent, equivalent to 10.45 cents against its American counterpart, to close in the interbank market at 19.8939 pesos per dollar. spotIt is worth remembering that on Friday the exchange rate ended the week at 19.9984 units per dollar.

According to the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 19.9000 units and a minimum of 19.8480 units.

This is in the midst of a dollar that gained strength on Monday, as according to its weighted index, the DXY, which measures its performance against a basket of six international currencies, it appreciated 0.46 percent, to 101.607 units.

After learning that US employment is beginning to show weakness, investors are awaiting the US inflation data on Tuesday to confirm that the Federal Reserve (Fed) will lower its reference rate. So far, the consensus is predicting a cut of 0.25 percentage points.

Amid the presentation of new Apple products and awaiting the US inflation data on Tuesday, Wall Street closed with gains of more than one percent.

The Dow Jones Industrial Average, the main US stock index, rose 1.20 percent to 40,829.59 points amid concerns that the Federal Reserve (Fed) may lower credit prices on September 18.

Meanwhile, the S&P 500 gained 1.16 percent to 5,471.05 points, while the technology-driven Nasdaq gained 1.17 percent to 16,886.15 points.

Investors are eyeing two key inflation reports this week that could provide clues about the Federal Reserve’s direction on interest rates. Analysts say a rate cut could help boost a slowing economy.

The stock market is coming off a week of losses – in which the technology sector was particularly punished – after the weak employment report for August that made investors fear a slowdown in the labor market.

For its part, the Mexican Stock Exchange gained only 0.10 percent, to 51,136.05 units, supported by La Comer shares, which gained 4.94 percent, after returning to the select group of the sample of the 35 issuers that make up the Price and Quotation Index (IPC) of the BMV; Oma advanced 3.38 percent; Volar, 2.70 percent; Alsea and Walmart rose 2.17 and 1.83 percent, respectively. The shares of Liverpool, with a fall of 4.75 percent; Alpek, 1.75 percent, offset the gains.

Meanwhile, oil prices came off last week’s lows, boosted by the threat of a hurricane in the Gulf of Mexico, which helped recover some of the losses accumulated last week. Brent rose 0.94 percent to $71.73 a barrel, while West Texas Intermediate (WTI) in the United States gained one percent to $68.35 a barrel.