The peso closed the session with an appreciation of 0.70% or 16.1 cents, trading around 22.70 pesos per dollar, gaining ground along with most of the main crosses of the dollar.

However, the appreciation of the peso is the result of a weakening of the US dollar, as uncertainty persists about the future of the economic recovery due to new cases of coronavirus, mainly in the United States.

So far this day in that country, 59,655 new cases of coronavirus have been registered, equivalent to a daily increase of 2%. In California alone, 11,694 new cases were reported, a historical figure and above the average for the last seven days of 8,116 cases daily.

It should be noted that in the session no relevant economic indicators were released at a global level, so the exchange market moved mainly according to technical levels.

In the capital market, mixed results were observed, with losses in Europe and gains in the United States, where the S&P 500 index registered an advance of 0.78%, driven mainly by issuers in the technology sector.

The gains from the US capital market are also a rebound from the losses recorded during the previous session, where the S&P 500 lost 1.08 percent.

The peso and other indicators

In Thursday’s session, the publication in Mexico of the inflation corresponding to June will be relevant, which is expected to be at a year-on-year rate close to 3.25 percent.

The publication of Banco de México’s monetary policy minutes will also be relevant, to assess the perception of risks of the Governing Board and the probability of additional cuts to the interest rate.

New episodes of exchange rate volatility related to a higher perception of risk in Mexico cannot be ruled out. Today, Pemex announced that it estimated an annual decline in domestic sales of 61% during the second quarter, after having fallen 25% in the first quarter.

Indicators of Banxico

The official financial figures for the second quarter will be released on July 27.

In the session, the peso-dollar exchange rate reached a minimum of 22.6788 and a maximum of 22.8984 pesos per dollar, the euro-peso reached a minimum of 25.6059 and a maximum of 25.9203 pesos per euro in the interbank prices for sale.

For its part, the euro hit a low of 1.1262 and a high of $ 1.1352 per euro.

At the close, the interbank prices for sale were 22.6788 pesos per dollar, 1.2565 dollars per pound and 1.1331 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE