Investors anticipate a recovery in the US economy

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The financial markets end the week with the release of US economic growth for the second quarter, which analysts expect at an annualized rate of more than 4%.

If faster economic growth has been confirmed, it is likely that the dollar in the day will strengthen, as it would increase the likelihood of the Federal Reserve raising its interest rate at the September 26 meeting. However, higher economic growth in the United States is also favorable for Mexico, due to the strong correlation between the two economies through exports.

Economic activity in the United States in the second quarter would have been mainly boosted by a sharp increase. According to experts, private consumption rose by 3.1% on an annualized basis, compared with 0.9% in the previous quarter.

At the same time, fixed investment could have been tempered by a lower growth rate of non-residential investment, estimated at 4.8% vs. 10.4% in the previous quarter, while residential investment offset the decline seen in the first quarter of 2018, with 2.6% growth in the second quarter

Finally, net exports will make a positive contribution to growth the emergence of exports before the entry into force of customs duties on US sales to China.

This Friday concludes the working visit of the Secretaries of the Economy, Ildefonso Guajardo, and Foreign Affairs, Luis Videgaray, to Washington to try to reach an agreement of NAFTA. Although the dollar has seen a general recovery after two days of decline, the peso was one of the few currencies to have gained ground against the greenback, as the renegotiation process could be successfully completed in a few months. weeks. [19659002HereAmericanRepresentativetotheCommerceRobertLighthizerasdarkedthatitwaspossibletoreachapreliminaryagreementintheNAFTAbargainingagreementthatthiscouldallowEnriquePeñaNietodesigntheagreementbeforetheindesignofthemandat

All his comments regarding the renegotiation were not favorable, because he said that Canada did not engage in the same way than the United States or Mexico. For this reason, the market will continue to wait for information confirming the continuity of the treaty.

Finally, Inegi and the Banco de México publish the preliminary report on June's trade balance, where analysts expect a surplus of $ 437.2 million.