Peso ends the week with good points

The Mexican peso ended the week with good points and managed to finish the session in constructive territory by which the greenback was strengthened and by which investor warning prevailed, awaiting the publication of key inflation information for April in the USA. subsequent week, the place new clues are sought about the way forward for financial coverage.

In wholesale operations, the peso ended at 16.78 items per dollar, in comparison with 16.79 the day past, based on the closing worth of the Financial institution of Mexico. The week ended with a bonus of 17 cents (1.04 p.c).

The session was marked by statements from a number of officers of the USA Federal Reserve (Fed), together with the pinnacle of the Dallas Fed, Lorie Logan, who stated that it’s not clear whether or not financial coverage is restrictive sufficient to scale back inflation to the central financial institution’s 2 p.c goal. She additionally thought of that “it’s too early to consider reducing charges,” referring to rates of interest.

“Operators proceed to cling to the state of affairs the place the Fed reduces rates of interest at the very least twice a 12 months,” CIBanco stated. “Nevertheless, the feedback from central financial institution officers look like geared toward getting ready the marketplace for a state of affairs the place the rate of interest stays unchanged for an extended interval,” he added.

Within the Chicago Worldwide Forex Market (Chicago Mercantile Alternate), speculative positions in favor of an appreciation of the Mexican peso had been decreased for the fourth consecutive week, after having reached their highest degree since February 2020.

For its half, the reference index of the Mexican Inventory Alternate (BMV), the S&P/BMV/IPC, fell 0.22 p.c and closed at 57,718.04 factors; Nevertheless, it gathered a weekly achieve of 1.02 p.c.

The BMV adopted the development of the New York Inventory Alternate, the place the principle indices closed with modest good points and as soon as once more recorded a weekly advance, whereas traders analyzed the feedback of the Federal Reserve officers and awaited essential information on inflation within the subsequent week. Atlanta Fed President Raphael Bostic acknowledged that there are current indicators that the financial system is slowing, however added that the timing of charge cuts stays unsure.