Saturday, February 24, 2024

The peso fell after a solid labor report from the United States

The Mexican peso fell on Friday in the face of a global strengthening of the dollar after the release of better-than-expected employment figures in the United States, which dampened hopes that the Federal Reserve (Fed) would start to cut interest rates .interest earlier this year.

The domestic currency traded at 17.1504 per dollar, with a loss of 0.41% compared to Thursday’s reference price and is on track to end the week with a marginal accumulated return of 0.02%.

“The initial reaction of the markets, especially the higher risk assets, is negative because the possibility increases that the first interest rate cut by the Fed will be delayed a little, and the number of times it can be reduced. The authority will lower the rate in 2024,” said CIBanco, in an analysis note.

The US unemployment rate remains at 3.7%

The US Labor Department said 353,000 jobs were created in January, more than expected, and surpassing data from the previous month.

The unemployment rate, for its part, remained at 3.7% for the third consecutive month, compared to a forecast of 3.8% by the Bureau of Labor Statistics (BLS). , for its acronym in English). It was also announced that the creation of new jobs totaled 353,000 in the first month of the year.

The unemployment data came two days after the Federal Reserve (Fed) decided again to keep interest rates unchanged.

World Nation News Desk
World Nation News Desk
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