- The US dollar loses ground compared to Chilean peso, operating when writing about 968.68.
- The dollar index (DXY) operates without significant changes in the first day of the week, consolidating within the previous session range.
- Copper prices rise 0.41% daily, reaching maximums of more than a week at $ 4,545 per pound.
- Investors will be attentive to Thomas Barkin’s speeches, Christopher Waller, Patrick Harker and Raphael Bostic, members of FOMC.
The USD/CLP marked a daily maximum in 985.22, attracting aggressive vendors that led parity to a minimum not seen from April 7 in 966.73. Currently, the USD/CLP quotes at 968.68, losing 0.33% today.
The Chilean weight can be seen waiting for the comments of the Fed members
The dollar (DXY) index has a marginal gain of 0.12% in the day, consolidating within Friday’s operational range at $ 99.87, ending with two consecutive days down.
The price of copper extends its gain and rebounds 0.47% reaching maximums of more than a week not seen since April 4 in $ 4,5907 per pound.
The attention of the operators will be set on the speeches they will offer during the day Thomas Barkin, Christopher Waller, Patrick Harker and Raphael Bostic, members of the Federal Open Market Committee of the Federal Reserve.
In this context, the Chilean weight maintains the upward perspective, while the USD/CLP falls 0.33% in the day, visiting April 7 levels in 966.63.
Technical levels in the USD/CLP
The USD/CLP reacted down from a short -term resistance given by the maximum of April 9 in 1,007.73. The next key resistance is observed at 1,017.05, maximum of January 17. Downwards, the key support zone is located at 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.
