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The peso ended the week with an appreciation of 2.08% or 39.6 cents, trading around 18.63 pesos for one dollar, the biggest weekly advance since July began, reported Banco BASE . The recovery of the national currency began on Monday, after US President Donald Trump declared that he was communicating with virtual president-elect Andrés Manuel López Obrador to do something "positive" for the two nations. 19659002] He also described López Obrador as a "prodigious" person, who influenced the exchange rate in favor of the peso.
Banco BASE stated that in the week that has ended, a language of cooperation has been observed between Mexico and its
In particular, he pointed out, because one s'. expects that a preliminary agreement can be reached next August, which would put an end to uncertainty about the future of the economic relationship. We expect that there will be news on the renegotiation process, which will be the key to the peso's price.
Similarly, a lower aversion was observed (in the week). risk, by reducing uncertainty about the future of trade between the United States and the European Union.
He recalled that last Wednesday, the President of the European Commission, Jean Claude Juncker, and President Trump announced an elimination of tariffs and subsidies to the industrial sector.
He said next week, market participants will focus on the Federal Reserve's monetary policy decision on Wednesday, Aug. 1. the Federal Open Market Committee (FOMC) is expected to increase its benchmark rate.
On the other hand, the Bank of Mexico (Banxico) will make its monetary policy decision on Aug. 2, where there is also no increase in the reference rate.
The financial institution pointed out, in a paper, that the peso-dollar parity had reached at least 18.5266 and a maximum of 19.1682 pesos per dollar.
Source: Notimex / Photo: Archive / JAC
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