The Mexican peso gains 43 cents in three days, driven by strong U.S. economic data.

The week has been more than favorable for the Mexican peso, which has benefited from better-than-expected economic data in the world’s largest economy.

On Thursday, the Mexican peso appreciated for the third consecutive session. The local currency strengthened thanks to economic data that brought reassurance to the markets, easing recent fears of a potential recession in the U.S. economy.

The exchange rate closed the day at 18.6474 pesos per dollar. Compared to yesterday’s level of 18.8303, according to data from Banco de México (Banxico), this movement represented a gain of 18.29 cents, equivalent to 0.97 percent.

The dollar’s price fluctuated within an open range, with a high of 18.8408 pesos and a low of 18.6320. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the U.S. currency against six peers, rose by 0.45% to a level of 103.03 points.

This week has been highly positive for the Mexican peso, bolstered by stronger-than-expected economic data from the U.S. Against Monday’s level of 19.0844 pesos, the currency has gained 43.70 cents, or 2.23 percent.

U.S. retail sales grew by 1.0% in July, far exceeding the expected 0.3% and the previous 0% figure, which was revised to -0.2%. This report comes after two inflation reports showing easing pressure.

Additionally, the weekly figure for new unemployment benefit claims totaled 227,000, better than the expected 235,000 and the previous 233,000, once again demonstrating the resilience of the U.S. labor market.

With these data, the Federal Reserve (Fed) may find it easier to cut rates at its next monetary policy meeting in September. Inflation is declining, the economy remains strong, and the labor market continues to hold up.

As U.S. retail sales and unemployment claims outperform expectations, the likelihood of a recession or a significant slowdown diminishes.