Peso extends recovery on the first day of December

The Mexican peso was appreciated in front of American dollar this Wednesday. The local currency extended its streak of consecutive gains to three, in a beginning of December that was highlighted by a greater appetite for risk assets.

The exchange rate ended operations at 21.3759 units against the close of 21.4681 units yesterday, with data from the Bank of Mexico (Banxico). This meant a gain of 9.22 cents or 0.43 percent for the peso.

With its movement, the peso extended its streak of gains to three and from a level of 21.8335 units, it has appreciated 45.76 cents or 2.10 percent. The fear in the markets of the Omicron variant of Covid-19 it has been nuanced.

Israeli authorities reported positive responses with vaccine schedules in cases of the Omicron variant of Covid-19. However, the markets are vigilant after the detection of a first case in the United States.

“The markets are beginning to rule out the worst scenarios (due to the Omicron variant of Covid-19) of the elements of uncertainty recently registered,” said Ci Banco.

On the other hand, traders continue to wait for economic information after the comments of the president of the Federal Reserve (Fed), Jerome Powell, who said yesterday that inflation may not be transitory.

The payroll processor ADP announced that the US private initiative created more jobs than expected in November. Better employment conditions and high inflation would facilitate interest rate hikes.

On the technical side, in its best record of the day, the pair touched a low of 21.4394 units, which allowed the price to bounce upwards towards a technical level of 50 days, which stands at 21.4774 units per greenback.

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