Who said cold? The peso is on fire and league third week of gains

The peso advanced against the dollar this Friday for the fifth day and third consecutive week, with capital markets pointing to a mixed bias and with investors weighing the possibility of additional stimulus in the United States and Europe.

In the interbank sphere, the national currency appreciated 1.71 percent in the week and stands at 20.06 units, according to data from the Bank of Mexico. In the session, the national currency appreciated 0.40 percent.

At a bank window, the greenback is sold for 20.63 pesos, according to Citibanamex.

The Mexican currency touched a minimum of 20.0793 units at 10:41 am and a maximum of 20.2582 units at 20:05 on Thursday.

The Bloomberg index, which measures the strength of the dollar against a basket of ten currencies, rose 0.03 percent to 1,148 units.

The session stood out for the lack of available economic indicators, but in contrast there were comments from members of the Federal Reserve (Fed).

In particular, they highlighted the comments of the Secretary of the Treasury, Steven Mnuchin, who sent a letter to Jerome Powell, president of the Fed, requesting that he return part of the money that the Government grants so that the Central Bank can carry out its loan program for corporate and municipal credit; But the Fed responded in a statement the importance of these measures being maintained during 2021.

According to information from Bloomberg, while Mnuchin said he is simply complying with the law prescribed by the Cares Act, markets reacted nervously to signs of disagreement between the two main US economic policy makers.

In this regard, Charles Evans president of the Chicago Fed said that this proposal was disappointing, although he clarified that this does not mean that the Central entity should increase the monetary stimulus at its next meeting.

Separately, Robert Kaplan, president of the Dallas Fed, noted that COVID-19 is affecting the recovery in the United States and that the economy will face very difficult months. “The latter part of the fourth quarter, and certainly the first quarter, will be very difficult in America.”

Pfizer and BioNTech have requested emergency authorization from the FDA so that their vaccine can be approved for use in the United States next month.

On the other hand, the World Health Organization (WHO) recommended not to use Remdesivir for the treatment of hospitalized people, stating that there is not enough evidence about its effectiveness

During the meetings of the International Monetary Fund (IMF), the managing director of the organization, Kristalina Georgieva, warned that the second wave of infections is impacting the pace of the recovery, which is losing momentum. Therefore, it recommended that government support not be withdrawn until the health crisis is left behind, analysts from Grupo Financiero Banorte explained in an analysis note.

On the other hand, the IMF approved that Mexico maintain the amount of the Flexible Credit Line at around 63 thousand 400 million dollars, in contrast to the reductions in recent years that the Government had been requesting and due to the risks that it still represents. the pandemic.

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