January, 2007
Mexican Peso Monthly Monitor
In December, the peso gained 1.7% (from 10.98 to 10.80 pesos/dollar). As we had anticipated, the Mexican currency ended the year heading toward 10.70 pesos/dollar. It is worth to mention the Mexican currency averaged 10.90 pesos/dollar in 2006, only one cent above the 10.89 average of 2005 despite presidential elections were held in 2006.

December, 2006
Economic Outlook
In the United States: Spillover effects from the cooling housing market will be larger in coming months mainly in durable goods production and furniture and home furnishing retail sales. As the Fed said in its most recent monetary policy meeting, economic growth will moderate in coming months, but it will remain out of recession ground.

In Mexico: Industrial activity will clearer reflect the US industrial softening in the first half of next year. Economic growth rate will moderate during 2007. Meanwhile, recent inflationary pressures have begun to ease. Lastly, so far this month, the Mexican peso has gained ground against the dollar and it could eventually head toward 10.70 pesos/dollar.