The peso closed the session with little change compared to Wednesday’s close, showing a moderate depreciation of 0.09% or 1.9 cents, trading at 22.39 pesos per dollar.

During the session, most financial markets globally showed mixed performance. The dollar weighted index closed with little change, showing a 0.05 percent drop.

It should be noted that, at noon, the exchange rate touched a minimum of 22.30 pesos per dollar, partially driven by the publication of positive economic indicators for the automotive sector in Mexico.

In the accumulated of the year (January to July) the total production of cars presents an annual contraction of 35.47%. However, when analyzing only the month of July, it stands out that automotive production was normalized by manufacturing 294,946 units, which meant an advance of 23.44% per month.

At an annual rate, it presented an increase of 0.65%, being its first advance in 4 months, since all the automotive plants resumed activities. As with production, exports show in the accumulated of the year a decline of 36.83 percent.

But, in July exports registered levels similar to those observed at the beginning of the year, with 256,098 vehicles, showing an advance of 30.55% per month

There was also a bit of optimism in the American session, following the publication in the United States of weekly employment data.

In the morning it was announced that applications for unemployment support in the United States stood at 1,186 million for the week ended August 1, decreasing 249 thousand compared to last week.

Although requests have been over a million for 20 consecutive weeks, this is the lowest level since the pandemic began in March.

The peso and IPC

In the capital market, the session was divided into two parts. In the Asian and European session, the main indices registered losses due to nervousness due to the growing number of coronavirus cases globally. For its part, gains were recorded in the American session.

The Dow Jones advanced 0.68%, the S&P 500 0.64% and the Nasdaq 1.00%. On the other hand, in Mexico the IPC of the Mexican Stock Exchange registered a gain of 0.25%, advancing for the second consecutive session.

Currencies

It is important to note that the performance of the foreign exchange market was mixed, with currencies such as the Australian dollar, the New Zealand dollar and the South Korean won advancing 0.65, 0.59 and 0.44% respectively.

On the other hand, currencies of countries producing raw materials, such as the Brazilian real, the South African rand and the Norwegian krone lost 0.94, 0.52 and 0.30% respectively.

Indicators of Banxico

The most depreciated currency in the session was the Turkish lira, which lost 2.51% and closed at 7.22 lira per dollar, reaching a new all-time high of 2.3103 lira per dollar, after its interventions in the market stopped.

However, due to the depreciation, the Central Bank of Turkey issued a statement announcing that they will begin to eliminate the liquidity measures imposed after the pandemic and will continue to closely monitor the market, therefore, interventions to reduce volatility in the market are not ruled out. short term.

In the session, the peso-dollar reached a minimum of 22.3009 and a maximum of 22.6100 pesos per dollar in the interbank prices for sale. For its part, the euro hit a low of 1.1818 and a high of $ 1.1916 per euro.

Finally, the euro peso touched a minimum of 26.4459 and a maximum of 26.7646 pesos per euro.

At the close, the interbank quotations for sale were 22.3925 pesos per dollar, 1.3140 dollars per pound and 11875 dollars per euro.

Gabriela Siller; PhD

Director of Economic-Financial Analysis.

Banco BASE