- The dollar falls 0.15% today compared to Chilean peso, currently operating in 953.94.
- The United States producer price index was 3.5% in January, higher than analysts’ estimates.
- Weekly requests for US unemployment subsidy increased to 213,000, below market projections.
- The price of copper rises 1.26% in the day, reaching maximum of almost nine months.
The USD/CLP marked a maximum of the day at 957.73, finding vendors that led parity to a daily minimum in 953.63. At the time of writing, the USD/CLP quotes at 955.05, falling 0.15% today.
The Chilean weight can be seen after the United States production price index
The US Labor Statistics Office announced that the producer’s price index rose 3.5% per year in January. This figure is greater than 3.2% estimated and at 3.3% previously registered.
On the other hand, weekly unemployment subsidy requests increased to 213,000 in the week that ended on February 7. This result is less than the 215,000 expected and the 220,000 previously registered.
The price of copper rebukes 1.04% daily, reaching maximums of almost nine months not seen since May 29, 2024 in $ 4,7331.
In this context, the Chilean weight signs its third consecutive day with profits, while the USD/CLP is consolidated at a minimum of two months at 955.05.
Technical levels in the USD/CLP
The USD/CLP established a short -term resistance given by the maximum of February 3 in 1,001.60. Down, the first support is at 940.90, minimum of October 24, 2024. The following key support is observed at 894.25, pivot point of September 30, 2024.
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.
