Forex: The Mexican peso quote cuts earnings

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Forex: The Mexican peso quote cuts earnings

Mexican Peso vs US Dollar

Mexican Peso vs US Dollar

At the beginning of last week, the Mexican currency was gaining ground, however that is not the case nowadays.

In the beginning of this week session, in the windows of the main banks in the Mexican economy, the dollar was quoted for sale up to 18.42 pesos per US dollar. This happened at Scotiabank, meanwhile, the US dollar for sale, denoted a minimum of 17.91 pesos per dollar, this is what happened in the famous Banco Azteca.

On the other hand, Inbursa was buying the dollar at a maximum of 17.70 pesos per US dollar; while Banorte as well as Scotiabank quoted it at the same version for the purchase, a minimum of 16.80 pesos per dollar.

The sources consulted from the capital city of Mexico, indicated that this behavior towards the loss in the peso was due to the taking of the utilities on the banks’ behalf, the funds and the investors of the market, such as the monetary market, currencies, Forex, financial and of values of the Aztec country.

Mexican economy in 2017

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According to Base Bank analysts , this event interrupted a streak of the 8 sessions of gains in the parity of the peso versus the dollar.

Reactions to the decision of the Federal Reserve

The Federal Reserve of the United States (FED) made the decision through the Federal Open Market Committee of raising the short-term reference rate to a maximum of 1.25%.

For the Bank Base, they believe this fact to be restrictive according to the liquidity of the exchange market: stronger than expected, but inflation in the United States has shown no signs of exceling.

The peso can regain ground again in short term, because it is expected that the Bank of Mexico, popularly known as Banxico, increase its referencial rate by the end of this week.

In Notimex, the dollar was gaining ground worldwide this week, against the basket of major currencies, after the data of the labour market in United States showed a much more solid environment regarding the medium-term.

The dollar ratio, which measures the strength of the American currency versus the basket of major currencies, was seen in a maximum of six days. The euro, meanwhile, moves to 1,1152 per euro, its lowest versus the dollar since May 30, after the publication of the United States economic data.

According to raw materials, a few hours ago it could be foreseen from the news that the future on crude oil of United States type West Texas with the expiration in July, sets the price on 44,62 dollars, 0.25% loss and no are contracts with prices of $45 until next September expirations.

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