Overview of the Day’s Key Events
The Mexican peso weakened against the US dollar during Thursday’s trading sessions. The local currency dipped slightly in a day where traders absorbed labor market data from the United States and consumer inflation figures for December in Mexico.
The exchange rate concluded the session at 17.9846 units per dollar, marking a decrease of 1.80 centavos or 0.10% from the previous day’s 17.9666 units, according to official Banco de México (Banxico) records. The dollar’s movement signifies a loss for the peso.
The dollar fluctuated between a high of 18.0185 units and a low of 17.9558 units. The Intercontinental Exchange’s Dollar Index (DXY), which compares the US currency to six strong currencies, rose 0.18% to 98.93 units.
Day’s Key Points
- In the United States, 208,000 new jobless claims were reported, lower than the previous week’s 213,000 but above market expectations of 200,000. This indicates a resilient labor market.
- Locally, the general consumer price index moderated to 3.69% annually in December, according to INEGI data, while underlying inflation slowed to 4.33%, remaining above the official target.
- Traders received the minutes from Banxico’s latest monetary policy meeting. The bank’s governing board will now assess the timing for further adjustments to the interest rate, following a 25-basis-point cut to 7% in December.
Anticipation of US Employment Report
Traders are awaiting the release of non-farm payrolls and unemployment rate data in the United States, scheduled for tomorrow. These figures will be crucial for the Federal Reserve (Fed), which will announce its first monetary policy decision of the year by month’s end.
“The dollar has strengthened following the release of economic data yesterday, raising uncertainty about the magnitude of cuts in 2026. Some Fed members have suggested that one or two more reductions may occur,” said Actinver in a note.
Key Questions and Answers
- What factors led to the peso’s weakening against the dollar? The Mexican peso weakened due to labor market data from the United States and consumer inflation figures for December in Mexico.
- What were the key US labor market figures? There were 208,000 new jobless claims reported, lower than the previous week’s 213,000 but above market expectations of 200,000.
- What were the inflation figures in Mexico for December? The general consumer price index moderated to 3.69% annually, while underlying inflation slowed to 4.33%, remaining above the official target.
- What is the significance of the upcoming US employment report? The non-farm payrolls and unemployment rate data will be crucial for the Federal Reserve’s upcoming monetary policy decision.
