The peso drops on Friday, December 18, after three days of gains

The Mexican peso depreciated on Friday after three profit sessions, in a market with the objectives of the Brexit negotiations, the approval of a stimulus package in the United States and an increase in coronavirus infections.

The currency was trading at 19.8350 per dollar, down 0.21% from Thursday’s Reuters reference price.

“The Mexican foreign exchange market is operating cautiously in the last session of the week,” CI Banco said locally in an analysis note.

In the previous three days, the peso had accumulated an advance of 2.2%.

The Mexican currency fell 0.41% to 19.8979 on the dollar on Friday, after advancing by about 2.1% between Tuesday and Thursday. The dollar also rose US stocks dropped from all-time highs as markets wait to hear about measures in Congress to help pandemic, which have been largely reduced in recent days. The default volatility for one month of the peso amounts to 14.06%, the first advance in four days.

The peso has risen about 1.5% since last Friday, despite falling today, heading for its sixth advance in seven weeks. Perception was seen strengthened this week by the fall of the dollar, advances in assets in emerging markets and delays in a controversial bill that could force Banxico to buy illicit money, possibly in dollars.

The Mexican peso’s maximum in today’s session was $ 19.7936, while the December peso’s close of $ 19.70 remains a short-term barrier to the currency. TIIE swap rates fell 3-4 basis points on Friday, after Banxico kept the benchmark rate unchanged yesterday after voting 3-2 in a split decision. The curve now reduces about 38 basis points of relaxation in mid-July.

(Some of the information comes from FX traders familiar with transactions who have asked not to be identified because they are not allowed to speak publicly.

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