EconomyMexican peso advances awaiting Powell's speech, outlines weekly gain

Mexican peso advances awaiting Powell's speech, outlines weekly gain

The Mexican peso appreciated at the opening on Friday, resuming a positive streak interrupted the previous day, pending the speech that the head of the US Federal Reserve, Jerome Powell, will offer during the day at the Jackson Hole symposium.

Exchange rate from dollar to peso

The Mexican peso was trading at 19.8804 per dollar, according to Bloomberg data, with a gain of 0.23%, compared to Thursday’s close recorded by the Bank of Mexico. The peso aims to end the week with an accumulated yield of 1.4%.

“The market is attentive to Jerome Powell’s comments, seeking clarity on the future of the increases in the Federal Reserve interest rate and the probability that they will continue to raise it at an aggressive pace of 75 basis points,” said Gabriela Siller, director of analysis at Banco Base.

At the local level, Mexico registered a deficit of 4,401 million dollars in the seasonally adjusted trade balance for July, according to data released by the statistics institute.

“Our currency has experienced some volatility in the overnight session, although for now it remains at the same level as yesterday’s close,” said Grupo Financiero Monex.

In the session, the movements will be given by the words of Powell, remembering that yesterday a minimum was reached at 19.85 that could be exceeded if the expectations of a pivot point for monetary policy are fulfilled.

During the session, the exchange rate is expected to trade between 19.83 and 19.97 pesos per dollar, according to Banco BASE.

With information from Reuters, Bloomberg and the Bank of Mexico.

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