The Mexican Peso is very weak after the central announcement of the United States

Spain Stock Exchange
Ibex closes above 10.800 for the first time in two years
May 12, 2017
Lima, Peru mining activities
Peru Stock Exchange still does not acknowledge the decrease in Asian markets
May 17, 2017

The Mexican Peso is very weak after the central announcement of the United States

Mexican Peso vs US Dollar

Mexican Peso vs US Dollar

The Mexican currency, after being one of the most dynamic towards USD the first three months of 2017, gave a little to the US currency in a day that is marked by the look of sadness by the announcement of the Federal Reserve System of the United States (FED) this announcement was given during this week.

According to an analysis of the economy unit of CNN in Spanish, explained that Mexico Peso loses this week after a recovery of USD, just in the middle of the bets that the FED will outline an increase in interest rates for the next month, during the announcement of monetary policy.

According to the Bank of Mexico and the Bloomberg agency, to the USD wholesale sells in 18.8279, this is a depreciation of 0.30% for the currency of Mexico in relation to what was seen last week. While according to Citibanamex, the United States currency is traded in the banking stores between 19.10 or 18.30 per dollar for sale and purchase respectively.

What to expect from the FED announcement?

For the moment and according to analysts who have been consulted, it cannot expect anything. Immobility in short-term reference rates for the subsequent meeting to be held in June.

According to Gabriela Siller, who is the director of Financial Economic Analysis of Banco Base, it will be very important to know the opinions of the FED Federal Open Market Committee, in relation to the United States economic growth during the last quarter. Investors will use the information collected to evaluate the likelihood of an increase in the benchmark rate for next June 14.

Janet Yellen, FED

Janet Yellen, FED

On the other hand, the analysis and Reuters news agency was much more emphatic in its statements, explained that most officials have made it clear that, compared to previous years, the Fed is much more confident with the forecast of the two additional increases in interest rates this year.

Now, the bets are moderate to low so the Fed will raise the interest rate this week according to experts, according to an analyst in Lima, an increase is not expected for May.

Finally, a specialized media explains that there is not a press conference of the president of the institution, Janet Yellen, so it is ruled out that there is some rise for this week. Less when the previous meeting the monetary authority has already raised rates by a quarter of a point, to be in the range of 0.75% to 1%.

Estimates from FMOC members say that the US issuer will raise interest rates two more times this year, leaving it in the 1.25% range, and 1.5%. The most likely dates, according to experts’ statements, are in June and September, but December may be a month where a rise is very possible.

Leave a Reply

Your email address will not be published. Required fields are marked *