The peso closed the session with a depreciation of 0.91% or 18.3 cents, trading around 20.38 pesos per dollar, with the exchange rate touching a minimum of 20.1797 and a maximum of 20.4944 pesos per dollar.

The above was the result of a sustained strengthening of the US dollar, whose weighted index increased 0.42%, the highest increase since January 27.

In general, the strength of the dollar is the result of the publication of positive economic indicators in the United States, since the ADP employment survey was published yesterday, which showed the creation of 174 thousand job positions during January, almost 100 thousand job positions higher than estimated.

Tomorrow, Friday, the official figure for job creation in the United States for January will be published.

The Mexican peso was the third most depreciated currency, after the Brazilian real, which lost 0.99% and the Chilean peso with 0.95 percent.

This performance was due to the strength of the dollar and is not associated with the behavior of the commodity market.

Oil prices closed higher, with WTI advancing 1.20% and brent gaining 0.75 percent.

Likewise, the gains in the capital market reduced the demand for safe haven assets, so that the price of gold closed with a decline of 2.22 percent.

The peso

It should be added that optimism was observed in the capital market, mainly in the United States where the S&P 500 registered an advance of 1.09%, while the Nasdaq advanced 1.23%, reaching new all-time highs in both cases.

It is important to note that the S&P 500 has advanced during the four sessions of the week and accumulates a weekly increase of 4.24%, which is why it is shaping up to be the week with the highest advance since the beginning of November.

From a technical point of view, the exchange rate shows signs of an upward trend change, as it spins nine sessions above the 50-day moving average (19.97 pesos per dollar), that is, above the short-term trend .

The resistance of 20.30 pesos per dollar, the upper band of the horizontal channel in which the exchange rate has been located since the end of November 2020, was also strongly pierced.

In the session, the euro touched a low of 1.1958 and a high of 1.2043 dollars per euro.

Finally, the euro peso touched a minimum of 24.2283 and a maximum of 24.5414 pesos per euro.

At the close, the interbank quotes for sale were at 20.3840 pesos per dollar, 1.3673 dollars per pound and 1.1964 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE