Monday, December 11, 2023

Financial markets await inflation data from the US

Weakness in the US currency was once again exploited by the Mexican peso, which continued to extend its gains for the fourth day in a row.

At the end, the Mexican currency appreciated by 0.49 percent, equivalent to 8.74 cents, to 17.8392 units per spot dollar.

According to data from the Bank of Mexico, the exchange rate moves between a maximum of 17.8970 units and a minimum of 17.8170 units. Although the national currency recovered and returned to trading below 18 per dollar, so far in October it has led to a depreciation of 2.36 percent; but it has an annual appreciation of 8.6 percent.

Although the latest minutes of the Federal Reserve (Fed) from the meeting of September 19 and 20, where it did not change interest rates, up to 5.50 percent, indicate that the central bank will continue to raise rates, investors are betting that inflation data tomorrow. will be positive so that the Fed, led by Jerome Powell, will not move rates in November.

The United States Federal Reserve (Fed) has remained aggressive in recent months, stating that a tighter policy is needed to achieve 2.0 percent inflation, but in recent sessions, some members have softened that speech, which is associated with the conflict of the war in the Middle East , investors prefer to listen to this message, although the prohibition of the monetary authority continues.

For their part, oil prices fell more than 2.0 percent, amid fears of supply disruptions due to conflict in the Middle East, a day after Saudi Arabia, OPEC’s top producer, promised to help to stabilize the market.

Brent crude fell 2.1 percent to $85.82 a barrel. US West Texas Intermediate (WTI) crude fell 2.9 percent to $83.49.

Brent and WTI rose above $3.50 on Monday on concerns that military clashes between Israel and the Palestinian Islamist group Hamas could escalate into a wider conflict that could disrupt global oil supplies, but stopped their growth.

While waiting for inflation data from the United States this Thursday, Wall Street closed higher, again, despite the fact that there is a war in the Middle East.

Investors are discounting that inflation in September will be positive so that the possibility that the Fed will think more about raising rates further decreases.

The S&P 500 rose 0.43 percent, to 4,376.95 points; while the Dow Jones increased by 0.19 percent, to 33,804.87 units; Meanwhile, the Nasdaq rose 0.71 percent, to 13,659.68 integers.

For its part, the Mexican Stock Exchange reported an increase of 0.11 percent, to close at 50,344.74 points.

World Nation News Desk
World Nation News Desk
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