- The US dollar wins against the Chilean peso, currently quoting in 941.75.
- The dollar index (DXY) goes back 0.29% in the day, operating when writing about 100.79.
- The price of copper falls 0.71% daily, reaching minimum of May 9 at $ 4,5524 per pound.
- The US retail sales rise 0.1% in April, slightly above the analysts’ forecasts.
- The president of the Federal Reserve, Jerome Powell, said that reviews of the Central Bank are being considered.
The USD/CLP established a daily minimum in 936.85, where it found buyers who promoted parity to a maximum of the day at 942.79. At the moment, the USD/CLP rises 0.01%, operating over 941.28.
Chilean weight operates without significant changes after key data from the United States
Based on information provided by the United States Census Office, retail sales increased 0.1% in April, this figure is after 1.5% observed in the previous period and slightly higher than the flat estimate of analysts.
On the other hand, the weekly applications of unemployment subsidy remained unchanged in 229,000 in the week that ended on May 10, complying with the projections of consensus.
The US Labor Statistics Office announced that the production price index increased by 2.4% annualized in April, below the estimated 2.5% and the increase recorded in March of 2.7%.
After this news, the dollar index (DXY) falls 0.29% today, consolidating within the operational range of the previous session at 100.79.
Copper prices go back 0.71% on Thursday, reaching minimum of May 9 at $ 4,5148 per pound.
The president of the Federal Reserve, Jerome Powell, acknowledged in his speech today that reviews of the Central Bank are being considered in relation to the framework adopted in 2020.
In this context, the Chilean weight advances marginally 0.01% today, quoting at the time of writing in 941.28.
Technical levels in the USD/CLP
The USD/CLP formed a short -term resistance given by the maximum of April 30 in 961.65. The following important resistance is at 1,007.73, maximum of April 9. To the south, the key 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.
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