- The US dollar falls in front of the Chilean peso, operating currently at 944.66.
- The dollar index (DXY) goes back 0.73% daily, reaching minimum of May 30 at 99.44.
- The price of copper rebuops 1.68% today, visiting two -day maximums in $ 4,6737 per pound.
- Non -agricultural payrolls in the United States increased by 177,000 in April, overcoming analysts’ estimates.
- The monthly economic activity index of Chile (IMACEC) rises 3.8% in March, improving market expectations.
The USD/CLP established a maximum of the day at 947.76, where it attracted aggressive vendors that dragged parity to a minimum not seen from April 28 in 938.54. Currently, the USD/COP loses 0.31% in the day, quoting about 944.66.
Chilean weight gains traction after the increase in its economic activity and non -agricultural payrolls in the United States
Based on the information presented by the US Labor Statistics Office, non -agricultural payrolls increased by 177,000 in April, exceeding the estimated 130,000, although located below the 185,000 reached in March.
At the same time, the United States unemployment rate did not present any variation by being 4.2% in April, fulfilling market expectations.
After this news, the dollar index (DXY) goes back 0.73% in the day, reaching minimum of April 30 at 99.43, ending with three consecutive sessions with profits.
The price of copper extends its profits, rising 1.75% on Friday, reaching two days at $ 4,6737 per pound.
On the other hand, the Central Bank of Chile announced that the monthly economic activity index of (IMACEC) increased by 3.8% in March, improving the estimated 2.7%. This figure is after the decrease of 0.1% observed in February.
In this sense, the Chilean weight signs its second consecutive day with profits, while the USD/CLP loses 0.39% daily, visiting minimal not seen since April 28 at 938.54.
Technical levels in the USD/CLP
The USD/CLP reacted the decline from a short -term resistance given by the maximum of April 30 in 961.65. The next key resistance is at 1,007.73, maximum of April 9. Down, the key support is observed in 915.57 Pivote Pivot 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.
