- The US dollar fell 0.24% daily against Chilean weight, currently operating in 927.82.
- The dollar index (DXY) loses 0.24%, reaching minimums of three days in 103.46.
- The United States retail sales rise 0.2% in February, below market estimates.
- Copper prices rebound 0.63% today, consolidating at maximum more than nine months in $ 4,8864 per pound.
The USD/CLP established a maximum of the day in 933.03, finding vendors that led parity to minimal not seen since October 7 in 923.17. Currently, the USD/CLP quotes over 927.82, falling 0.26% daily.
Chilean weight gains traction after weak retail sales in the United States
Based on the information presented by the US Census Office, February retail sales registered an increase of 0.2% compared to 0.7% estimated after the 1.2% decrease observed in January.
After this result, the dollar index (DXY) signs its second consecutive day down, falling 0.24% on the first day of the week, reaching minimum of March 12 in 103.46.
On the other hand, the bullish pressure in copper prices continues, winning 0.63% in the day, staying at maximums not reached since the end of May 2024 in $ 4,8864. The increase in the price of copper is fed by Donald Trump’s erratic tariff rhetoric, threatening the imposition of metal import tariffs.
In this context, the Chilean weight extends its profits, visiting maximums not seen since October 7, while the USD/CLP falls for the third consecutive day, reaching minimums not seen since October 7, 2024 in 923.17.
Technical levels in the USD/CLP
The USD/CLP reacted down from a short -term resistance given by the maximum of February 28 in 963.00. The next key resistance is observed in 1,017.05, maximum of January 17. Downwards, the closest support is located at 894.25, pivot point of September 30.
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.
