Achieves the minimum weight visible since May 1st

CITY OF MEXICO

In the week just ended, the peso ended with an appreciation of 0.75% or 14.4 cents and quoted around 18.89 pesos per dollar, after touching a minimum of 18.7581 pesos per unit, level not seen since May 1.

According to Banco Base although the market expects the peso to continue to appreciate In the coming weeks, the recovery of the national currency is expected. slowed down and the exchange rate failed to consolidate below the key level of 19.00 pesos to the dollar

. there was an increase in companies' demand for dollars as a hedge, as there are still risk factors for the stability of the exchange rate during the second half of the year.

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The demand for dollars has also been reflected in the exchange rate , due to the fact that there is less seasonal liquidity in the foreign exchange market due to

Although the appreciation of the Mexican currency has been moderate, the Chicago Futures Market (19459013) recorded a reduction in bets against the peso.

the week between July 4 and July 10, the speculative positions pending a depreciation of the peso fell by 30.14 percent or 16 thousand 547 contracts, each of 500 thousand pesos, while the positions pending an additional recovery of the peso, they increased by 9.32% or 5,000 670 contracts.

As a result of the foregoing, Banco Base does not exclude the peso from gaining ground over the next few weeks at 18.50 pesos per dollar

. week, the main factor of exchange rate volatility was speculation related to the Sino-US trade war

. The representative of United States Commerce has published a list of goods imported from the Asian country worth $ 200 billion, which would impose a 10 per cent duty after August 30.

If this measure came into force, the neighboring country to the north could impose a total of 250 billion imports from China, which represents about 50 percent of total US imports from this country . 19659005]

The above would further increase inflation in the United States, increasing the likelihood that the Federal Reserve will accelerate its rate normalization process. By the end of the week, participants At the market were paying attention to a meeting between the state secretaries, the Treasury and the US National Security, with the winning candidate in the race for the presidency. , Andrés Manuel López Obrador .

After the meeting, the US Secretary of State, Mike Pompeo, told López Obrador that the visit of senior officials is a sign that his country values ​​much of the relationship with Mexico and that although it is a good idea There have been complications between the two countries, Donald Trump is determined to improve and strengthen the relationship.

* jci