Friday, September 22, 2023

Weight is appreciated; looking to end a seven-game losing streak

Mexico City. After seven sessions of closing losses against the dollar, the Mexican peso wants to end the losing streak and open this Monday with an appreciation of 0.62 percent, operating at 17.4716 units per dollars.

According to data from the Bank of Mexico, the national currency closed on Friday at 17.6081 pesos per spot dollar, making it the seventh consecutive day of depreciation against the US currency.

This Monday, the dollar, after achieving eight consecutive weeks of appreciation against its main crosses, the best streak since 2005, began this Monday with a depreciation of 0.56 percent, to available for 104,130 units.

Inflation data from the United States and the meeting of the European Central Bank (ECB) will monopolize the spotlight this week in the markets.

The flow of macroeconomic data last week, mostly focused on industrial activity numbers, cast new shadows on the European economy. This week all eyes are on the response of the European Central Bank, on the one hand, the continued inflationary pressure, and on the other, the continued signs of weakness shown in the eurozone economy. The differences between inflation and growth complicate the task of the ECB, and analysts, who are divided on whether the central bank will finally choose on Thursday to raise interest rates by one more level or choose to stop adjusting them. .

On Wall Street, the three main stock indexes reported gains at the start of the session. On a day that commemorates the attack on the Twin Towers in 2001, in the financial center of New York, the Nasdaq rose 0.40 percent; the Dow Jones, 0.22 percent and the S&P 500, 0.32 percent.

Next Wednesday, the most anticipated macro data of the whole week will be released, inflation in the United States. Unlike in previous months, this time the forecasts point to an interruption in the long-awaited ‘disinflation’ process. If the analysts’ forecasts come true, the August CPI may rise from 3.2 to 3.6 percent.

This upward change in prices, which seems to be a matter of comparison, with continued pressure from the underlying inflation, puts at risk the forecast of some companies that the United States reference rates are already at the peak. . In principle, analysts do not see changes in rates at the meeting of the Fed next week, but they do not rule out any further changes before the end of the year.

The oil market is also grateful for the break given today to the price of the dollar, the currency that monopolizes the market of raw materials and on Friday rose for eight consecutive weeks. WTI was barely up 0.34 percent, to $87.81.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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