- The US dollar loses ground compared to Chilean peso, quoting when writing at 930.71.
- The dollar index (DXY) falls 0.31% in the day, reaching a minimum of the day at 100.09.
- The price of copper rebuops 1.25% on the last day of the week reaching maximum of May 7 in $ 4,6753 per pound.
- The president of the Fed in New York, John Williams, stood out in his speech today that achieving price stability is essential for the Central Bank.
The USD/CLP established a maximum of the day in 941.56, finding aggressive vendors that dragged parity to minimums not seen since March 27 in 928.21. Currently, the USD/CLP loses 1.18% daily, operating at the moment over 930.71.
Chilean weight extends its profits reaching maximums of a month and a half
The president of the Federal Reserve of New York, John Williams, said today that the data reflects a good position of the economy, so it remains focused on maintaining inflation as close as possible to 2% with the aim of achieving price stability.
On the other hand, the dollar index (DXY) reacts down from the maximum of April 11 in 100.86, establishing a daily minimum in 100.09, ending with two consecutive days upwards.
Copper prices rebound from April 11 at $ 4,4177, attracting buyers who promoted metal to a maximum of the day in $ 4,6753 per pound.
In this scenario, the Chilean weight operates in positive terrain, while the USD/CLP decreases 1.05% today, visiting minimos not seen since March 27 at 928.21, spinning 2 consecutive days with losses.
Technical levels in the USD/CLP
The USD/CLP reacted down from a short -term resistance given by the maximum of April 30 in 961.65. The next key resistance is observed at 1,007.73, maximum of April 9. Down, the important support is 915.57, a pivot point of 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.
