The Mexican peso traded steadily against the dollar in the last session of the week. The local currency showed little change despite a strengthening of the greenback in the market, reacting to key employment data released by the Federal Reserve (Fed) in the United States.
The spot exchange rate is at 17.9946 pesos per dollar. Compared to yesterday’s close of 17.9846 pesos, based on official data from the Bank of Mexico (Banxico), this represents a loss of 1 centavo, or 0.05 percent.
The dollar is trading in a range between a high of 18.0412 pesos and a low of 17.9506 pesos. The Dollar Index (DXY) of the Intercontinental Exchange, which compares the US dollar to six major currencies, is up 0.18% at 99.05 points.
Job growth in the United States slowed more than expected in December, amid business caution. Nonfarm payrolls added 50,000 new jobs last month. The unemployment rate fell to 4.4 percent.
These figures support expectations that the Fed will keep its interest rate unchanged at its meeting at the end of the month. The central bank has raised rates by 25 basis points at the last three meetings, but a pause is expected at the start of this year.
Traders are also closely monitoring geopolitical developments in the region following the US actions in Venezuela that led to the capture of Nicolás Maduro. The threat of a US attack on cartels in Mexico is a topic of discussion.
“Today, the peso is being affected by increased market nervousness after US President Donald Trump threatened a possible military intervention in Mexico. Support and resistance levels are located at 17.95 and 18.07,” Monex stated.
On the last trading day of this week, the accumulated balance is also negative for the peso. Compared to a closing price of 17.9142 units per dollar last Friday, this represents an accumulated loss of 8.04 centavos, equivalent to 0.45 percent.
Source: eleconomista
