The peso closed the session with few changes, showing a depreciation of 0.30% or 6.2 cents, trading around 20.34 pesos per dollar, the exchange rate touching a minimum level of 20.1719 pesos overnight, after it was announced that the vaccine developed by Pfizer and BioNTech has achieved a 95% success rate, higher than the results reported in previous weeks.

The optimism of the financial markets was temporary, as the news about the advance of the coronavirus continues to represent a greater risk of economic stagnation towards the end of the year and it cannot be ruled out that the recession will have a “W” shape.

But market sentiment deteriorated as the session progressed, which was mainly reflected in the US capital market, where the main indices closed with losses.

The Dow Jones fell 1.16%, while the S&P 500 lost 1.16% and the Nasdaq 0.82 percent.

This happened after confirming that the confinement measures continue to be expanded in the United States.

In New York, as of Thursday, face-to-face schools will close, after the rate of infections in the city exceeded 3% of the tests carried out.

The measure is also interpreted as a return of the severe confinement measures, as happened during the second quarter and that could be extended to other states of the American Union.

The peso and other currencies

Although most currencies in the exchange market closed the session higher, those of emerging economies showed declines, such as the Brazilian real that depreciated 0.58%, the South African rand that lost 0.31%, the Turkish lira with a decrease of 0.20% and the Colombian peso with a 0.16 percent decline.

Among Latin American currencies, only the Peruvian sol (+ 0.83%) and the Chilean peso (+ 0.95%) gained ground against the dollar, which is due in part to the increases in the price of copper that this week hit a maximum of $ 7,197 per metric ton, a level not seen since June 2018.

The price of copper maintains an upward trend due to two factors: 1) the sustained economic recovery in China and 2) the increasing number of cases of coronavirus that threatens production in mines in Chile.

The oil

In the raw materials market, the appetite for risk was maintained due to the reports on the effectiveness of the vaccine.

Indicators of Banxico

The WTI closed the session trading at 41.95 dollars per barrel, showing an increase in its price of 1.23%, while the price of Brent increased by 1.71% and is trading around 44.51 dollars per barrel.

In the session, the exchange rate touched a minimum of 20.1719 and a maximum of 20.3509 pesos, the euro touched a minimum of 1.1851 and a maximum of 1.1891 dollars per euro. Finally, the euro peso touched a minimum of 23.9608 and a maximum of 24.1212 pesos per euro.

At the close, the interbank quotes for sale were located at 20.3370 pesos per dollar, 1.3266 dollars per pound and 1.1852 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE