- The US dollar rises 0.12% today against Chilean peso, currently quoting in 947.49.
- The US ADP Employment Report corresponding to the month of March registered an increase to 155,000 positions, improving the expectations of consensus.
- The dollar index fell 0.23% on Wednesday, reaching minimum of March 31.
- The focus of investors will be in the tariff announcement that Donald Trump will make, at the close of the market.
The USD/CLP marked a minimum of the day in 946.53, finding buyers who promoted the maximum of two days in 949.50, at the time of writing, the USD/CLP operates in 947.49, winning 0.22% in the day.
Chilean weight loses land prior to the imposition of reciprocal tariffs by Donald Trump
According to information presented today by Automatic Data Processing (ADP), private hiring in the United States increased by 155,000 positions exceeding the 105,000 expected and the 84,000 registered in the previous period.
After these results, the dollar index falls 0.23% in the day, visiting minimums of two days in 103.93, thus ending with two consecutive days upwards.
Investors will focus all their attention on the announcement of reciprocal tariffs that the US president will carry out, Donald Trump, at the end of the American session.
In this context, the Chilean weight is listed with losses on Wednesday, while the USD/CLP operates upwards, signing its second consecutive day with profits, racing at maximum March 31 in 949.50.
Technical levels in the USD/CLP
The USD/CLP established a short -term support given by the minimum of March 19 at 915.57. Upwards, the closest resistance is 963.00, maximum of February 28. The next key resistance is observed in 1,017.05, pivot point of January 17.
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.
