Mexico City. The Mexican peso could not against the strength of the dollar, after United States manufacturing activity grew for the first time since 2022.
It seemed that the Mexican currency was going to have a day of glory this Monday, after the winning first quarter and extending its best levels since 2015, trading above 16.53 per dollar in the first minutes of the session.
However, the news that the Institute of Supply Management (ISM) Indicator rose 2.5 points to 50.3 units in March, a level that separates expansion from contraction, ended 16 consecutive months of contraction of manufacturing activity in the United States, Mexico’s main trading partner.
The improvement in the ISM manufacturing data caused a sharp rise in the dollar index, DXY, which rose 0.41 percent, to 104.695 units, levels not seen since February; Meanwhile, the yield on the US 10-year bond rose to 4.310 percent, inching closer to its highest level of the year.
Thus, the Mexican peso depreciated 6.87 cents, equivalent to 0.41 percent, to close at 16.6312 units per spot dollar. According to the Bank of Mexico, the exchange rate operated between a maximum of 16.6760 units and a minimum of 16.6320 units.
The national currency had started April strong against the dollar, due to strong news from China, as manufacturing activity expanded in March for the first time in the last 12 months.
On Wall Street, US stocks finished mixed. The S&P 500 fell 0.20 percent, to 5 thousand 243.77 units; while the Dow Jones fell 0.60 percent, to 39,566.85 integers. The tech-heavy Nasdaq closed slightly higher, although far from its previous session highs, up 0.11 percent to 16,396.83 points.
Data released Monday showed the U.S. manufacturing sector is in its strongest position since 2022, raising questions about whether the economy is accelerating and its impact on the Federal Reserve’s path toward interest rates.
And if the US economy remains strong, monetary restriction would not be a problem, since US inflation finds it difficult to decline faster.
Meanwhile, market participants are more positive, as the US employment figures next Friday will be key. The market consensus expects non-farm payrolls in the United States to increase by 198 thousand in March, which would mark a decrease compared to the 275 thousand jobs created in February; while the unemployment rate can remain unchanged.
For its part, the Price and Quotation Index (IPC) of the Mexican Stock Exchange (BMV) gained 284.22 points, equivalent to 0.50 percent, to close at 57,653.23 points.
China’s manufacturing activity supports oil demand, as it is the largest oil importer in the world, which is why Brent prices gained 0.48 percent, to $87.42 per barrel; while WTI advanced 0.65 percent, to $83.71.
Gold reached new highs this Monday, after a series of records in March. Precious metal futures rose more than one percent to trade as high as $2,286.40 a troy ounce.
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– 2024-04-08 17:53:30
