- The Colombian Peso (COP) has shown a recovery against the Dollar (USD) this Monday, March 4.
- The exchange rate is trading around 3,945 pesos per dollar at the time of writing this news, which represents an appreciation of 0.81% compared to the previous day.
- The Colombian Peso has found liquidity from buyers and has remained above the support of 3,904.16 pesos per Dollar.
What factors explain the recovery of the Colombian peso and what is expected in the coming days?
The Colombian peso has benefited from improved economic expectations, both globally and locally, which have boosted risk appetite and demand for emerging currencies.
The pair USD/COP is technically forming an ascending triangle that breaking upwards would lead to a possible trend change for the pair. The stochastic indicators, moving averages and MACD, suggest a buy signal. The nearest resistance is at 3,963.27 pesos per dollar, while The closest support is located at 3,904.16 pesos per dollar on daily chart.
Fundamental analysis indicates that the Colombian peso could be affected by the economic data that will be published this week, both in the United States and in Colombia. In the United States, the Institute for Supply Management's (ISM) services Purchasing Managers' Index (PMI) is expected to be released on Tuesday, the ADP private sector jobs report on Wednesday, and the official U.S. labor market report. February nonfarm payrolls (NFP) on Friday. In addition, the testimony of the president of the Federal Reserve (FED), Jerome Powell, before Congress is also scheduled for Wednesday and Thursday. These data could influence the strength of the Dollar and monetary policy expectations. In Colombia, inflation data measured by the Consumer Price Index (CPI) for February will be published on Thursday.
So, The Colombian peso faces a complex and challenging scenario, in which you will have to deal with internal and external tensions that affect your value. Analysts recommend being attentive to macroeconomic data, monetary and fiscal policy decisions, and political and social events that may influence its price.
USD/COP daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
