Mexico City. The Mexican peso remains highly volatile, as it once again starts the session under pressure. The Mexican currency depreciated 0.18 percent at the opening of American markets this Thursday, trading at around 19.8216 pesos per dollar.
Amid confirmation that the European Central Bank (ECB) cut its interest rates by a quarter of a percentage point to 3.5 percent, the lowest level since June 2023, and that producer inflation in the United States was above expectations but remains consistent with the decline, the national currency is losing slightly against the dollar, after closing yesterday at 19.7935 pesos per spot dollar.
The dollar remains weak worldwide, according to its weighted index, which measures the performance of the US currency against a basket of six international currencies, falling 0.06 percent to 101.587 units.
Traders are also looking at the US producer inflation data. In Mexico, judicial reform has been approved by 18 local congresses.
The Bureau of Labor Statistics (BLS) released its producer price inflation (PPI) figures, which showed a monthly variation of 0.2 percent in August, slightly above the market consensus of 0.1 percent monthly and zero percent of the previous month.
Thus, in its annual variation, PPI inflation was 1.7 percent (previously it was 2.1 percent) and the underlying PPI was 3.3 percent, slightly above the previous 3.2 percent.
“Overall, US producer prices rose slightly more than expected in August amid higher service costs, but the trend remained consistent with declining inflation,” Intercam analysts explained.
Producer inflation in the United States is expected to be the last reading from the Federal Reserve (Fed) before its monetary policy meeting next week, which almost guarantees the start of a less restrictive policy.
Initial claims for unemployment insurance in the United States for the week ending September 7 stood at 230,000, which was an increase of 2,000 from the previous week of 228,000.
Risk appetite could be partly supported by the expectation that the Fed will begin to reduce the federal funds target on September 18. The Nasdaq is up 0.43 percent this morning, while the S&P 500 is up 0.22 percent.
The Mexican Stock Exchange (BMV), for its part, rose 0.46 percent to 51,426.71 points.
The lowering of economic alerts and the threat of hurricanes to the US oil industry trigger a rebound in oil prices. The Brent barrel has come off its lows and recovered to $71, gaining 1.66 percent to $71.80. The West Texas barrel, the benchmark in the United States, rebounds to $68, with an advance of 1.93 percent to $68.61.
#peso #pressure #dollar #ECB #data
– 2024-09-22 15:51:01
