Mexico City. Optimism over interest rate cuts in the United States, following the April non-farm payrolls report, which suggests a moderation in US employment, caused the dollar to lose strength globally and emerging currencies, such as the peso, appreciated. Mexican.
At the close of the interbank market, the Mexican peso appreciated 0.66 percent, equivalent to 11.29 cents against the dollar, to 16.8813 units per spot dollar. The national currency posted two consecutive gains and accumulated an appreciation of only 0.5 percent during the year.
According to data from the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 16.9150 units and a minimum of 16.8550 units.
The debt market, the most sensitive to monetary policies, retreated due to the possibility of a softer stance from the Federal Reserve (Fed). Debt interest rates correct from their recent six-month highs. The required yield on the 10-year US bond moderates to around 4,487 percent.
During the day, the interventions of two members of the Federal Open Market Committee (FOMC) of the Federal Reserve stood out, Thomas Barkin, regional president of Richmond and John Williams, president of the New York Federal Reserve.
New York Federal Reserve President John Williams said the timing of a decision to cut interest rates will depend on the “totality of the data.”
While Richmond Federal Reserve President Thomas Barkin stated that he expects high interest rates to further slow the economy and cool inflation to the 2 percent target.
During the day, he highlighted that Hamas announced that it accepted a ceasefire proposal between Egypt and Qatar. The head of the Hamas political bureau, Ismail Haniyeh, informed Egypt and Qatar this Monday that the Palestinian Islamist group accepted his proposal for a ceasefire in the Gaza Strip.
The price of Texas intermediate oil (WTI) closed this Monday with a rise of 0.9 percent, at $78.79 per barrel, thus breaking last week’s trend.
US crude oil fell more than 6.70 percent last week as investor fears of a war between Iran and Israel dissipated and US crude inventories rose on weaker demand.
Wall Street, for its part, closed with solid gains and continued to take advantage of a drop in U.S. employment, which helped spur bets toward an earlier rate cut by the Federal Reserve.
US stocks closed near session highs on Monday, when the S&P 500 recorded its best three-day streak, gaining 1.03 percent, to 5,180.74 points; while the tech-heavy Nasdaq rose 1.19 percent to 16,349.25 points. The Dow Jones Industrial Average increased 0.46 percent, to 38,852.27 points.
More than two-thirds of bets now center on an interest rate cut by the Federal Reserve in September, according to the CME FedWatch tool. Most traders now expect at least two cuts by the end of the year.
Those bets could change with the return of Fed speech, now that freely speaking Fed officials are no longer subject to the blackout period before meetings.
The Mexican Stock Exchange (BMV), for its part, advanced 0.26 percent, to close at 57,282.95 integers.
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– 2024-05-09 20:03:38
