- The US dollar rises in front of Chilean peso, currently quoting at 935.26.
- The dollar index (DXY) marginally rises 0.03% daily, staying within the operating range of Friday’s session at 99.61.
- The price of copper rises 0.25% on Monday, operating currently over $ 4,837 per pound.
- The operators will be attentive to the publication of the unemployment rate and the decision of interest rates of the Central Bank of Chile, tomorrow.
- The US Treasury Secretary, Scott Besent, said negotiations with business partners are on the right track.
The USD/CLP marked a daily maximum in 936.51, finding vendors that led parity to minimums not seen since March 31 in 931.18. At the moment, the USD/CLP rises 0.03% in the day, operating when writing about 935.26.
The Chilean weight remains stable prior to the decision of types of the Central Bank of Chile
According to the comments made today by the United States Secretary of the Treasury, Scott Besent, negotiations with Asian commercial partners have presented progress, highlighting that a tariff trigger depends on China.
In this sense, the dollar index (DXY) operates without significant changes on Monday, winning 0.03% in the day, consolidating within the previous session range at 99.61.
On the other hand, copper prices earn 0.25% today, currently quoting at $ 4,4837 per pound, bouncing from a minimum of the day in $ 4,7527 to a daily maximum in 4,8422.
In this scenario, the Chilean weight operates with slight losses, while the USD/CLP rises 0.03 % in the day, after reaching one month in 931.18.
The Chilean Economic Agenda contemplates tomorrow the publication of the March unemployment rate, which was 8.4% the previous month. Similarly, the Central Bank of Chile will announce its interest rate decision, the market expects to remain unchanged by 5%.
Technical levels in the USD/CLP
The USD/CLP established a short -term resistance given by the maximum of April 9 in 1,007.73. The next important resistance is 1,017.05, maximum of January 17. Downwards, the key support zone is located at 915.57, a pivot point on March 19.
USD/CLP daily graphics
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values that overcome in new purchases. It is usually positive for the US dollar.
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.
