- The US dollar goes back to the Chilean peso, contributing currently at 944.35.
- The dollar index (DXY) falls 0.44% daily, oscillating within the operational range of the previous session in 101.36.
- The US Consumer Price Index is moderated to 2.3% per year in April, improving the analysts’ forecasts.
- Copper prices earn 0.48% today, currently operating about $ 4,5949 per pound.
The USD/CLP established a daily maximum in 946.60, finding vendors that dragged parity to a minimum of the day at 942.15. Currently, the USD/CLP goes back 0.21%, operating over 944.35.
The Chilean weight can be seen behind US inflation data.
Based on information presented by the US Labor Statistics Office, the Consumer Price Index (CPI) decreased to 2.3% per year from 2.4% observed in March. As for the underlying CPI, there was a 2.8% annual rise, in line with the previous and planned figure.
In this sense, the dollar index (DXY) loses 0.47% on Tuesday, consolidating within Monday in 101.35.
The price of copper earns 0.48% today, staying within the operational range of the previous session at $ 4,5971 per pound.
The Chilean peso advances against the US dollar, while the USD/CLP falls 0.21% in the day, currently quoting 944.35.
Technical levels in the USD/CLP
The USD/CLP established 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.
