The peso ends the week at 19.25 per dollar, driven by positive US labor report

The Mexican peso appreciated and recorded one of the best performances of the day among global markets, after the release of a solid employment report in the United States.

In wholesale operations, the peso closed at 19.2587 with a gain of 10 cents (0.55 percent) compared to the previous day, according to the price of the Bank of Mexico. During the week, it achieved a profit of 43 cents (2.19 percent), despite a strengthening of the dollar.

While the US employment data, on the one hand, reduced bets that the Federal Reserve (Fed) will maintain large rate cuts at its two remaining meetings this year, on the other, it sent good signals about the health of the largest economy in the world and Mexico’s main business partner, analysts agreed.

The weight is benefited by several factors. On the local front, the unemployment rate continued to decline, reflecting reduced pressures on the labor market. On the external side, employment data in the United States postpones the vision of an economic slowdown that could permeate our country, in addition to marking a more moderate pace of cuts for the Fed, adjusting to the expectations of Bank of MexicoMonex said.

For its part, the benchmark index of the Mexican Stock Exchange (BMV) rose 1.81 percent to 52,609.87 points. However, it ended the week with a slight cumulative decline of 0.3 percent.

On Wall Street, the main indices also gained and the Dow Jones scored a record of 42,352.75 points.

Petroprice rebound

Oil prices rose, posting weekly gains of around 9 percent, the biggest in more than a year, amid the growing threat of war across the Middle East region. In this context, Brent added 43 cents to 78.05 dollars, the American WTI gained 67 cents to 74.38 dollars a barrel and the Mexican export mix advanced 79 cents to close at 69.33 dollars a barrel.

Separately, job growth in the United States accelerated in September and was the best in six months, while the unemployment rate unexpectedly fell to 4.1 percent, reducing the need for the Federal Reserve (Fed) to maintain large interest rate cuts at their two remaining meetings this year.

Nonfarm payrolls increased by 254,000 jobs last month, the Labor Department reported. The figure far exceeds the 140 thousand expected by the market and the 159 thousand places created in August, a figure revised upwards. The Department of Labor also revised upward the figures for previous months.

President Joe Biden, who will leave the White House on January 20, welcomed a good news for American workers and their families.

Although unemployment fell in the monthly measurement, it registers a noticeable increase compared to September 2023 of 0.3 percentage points, which means that 500 thousand more people are looking for work.

The September data takes into account the impact of Hurricane Francine, which hit Louisiana although with limited effect on employment, but does not incorporate the consequences of Hurricane Helene, which devastated the southeastern coast of the United States, from Florida to Virginia. In addition, thousands of Boeing machinists went on strike in September, with ripple effects on the aerospace company’s suppliers, which, if continued, could create turbulence in the labor market.