The mexican peso is falling against the us dollar for the third day in a row. The economic data for mexican today exceeded expectations, but did not stop the recovery of the dollar. The pair USD/MXN rose from 17.75 and reached its maximum at 17.89, the strongest level in two weeks.
Currently, the pair is trading at 17.83 and is consolidating above the technical area relevant 17.80. Despite the gain today, the pair is poised to end July with a decline of 1.60%. A us dollar weaker in general, an improvement in the numbers of the macroeconomic mexicans, the positive expectations about the renegotiation of NAFTA and the increase in the price of oil (8.5% on average in July) supported the bias downward in the pair. Two weeks ago arrived at 17.44, the lowest since may of 2016.
Mexican GDP: not as bad as expected
Today, the INEGI (National Statistics Institute) reported that the economic growth in Mexico slowed down but less than expected during the second quarter. The GDP grew 0.6% compared with the previous quarter, above the 0.2% expected by economists. The annual rate slowed from 2.7% to 2.4%. The services sector showed a strong number that offset a modest growth of industrial production. The highest rates, inflation and the renegotiation of the NAFTA seem to be the main risks to the growth during the second quarter.
The next reading of GDP will be released on the 22nd of August, while the next policy meeting of the Bank of Mexico is the 10th of August.