- The US dollar advances to the Chilean peso, operating when writing about 942.63.
- The dollar index (DXY) falls 0.11% today, consolidating within the previous session range at 100.25.
- The price of copper goes back 0.46% in the day, staying within Monday’s session, currently quoting at $ 4,5879 per pound.
- The attention of investors will be set on the speeches of Alberto Musalem, Beth Hammack, Rafael Bostic and Mary Daly, members of the Fed.
The USD/CLP marked a daily minimum in 937.21, attracting buyers who brought parity to a maximum of the day in 944.58. Currently, the USD/CLP rebounds 0.19%, oscillating within Monday’s operational range at 942.91.
The Chilean weight remains stable waiting for the comments of the members of the Fed
In the midst of a day with little volume, the attention is concentrated in the statements of Alberto Musalem, Beth Hammack, Rafael Bostic and Mary Daly, members of the Federal Reserve.
In this context, the dollar index (DXY) goes back 0.11% on Tuesday, remaining within the previous session range at 100.25, signing its second consecutive day down.
On the other hand, the price of copper falls 0.46% daily, consolidating within Monday’s session at $ 4,5879 per pound.
The Chilean weight reacts down from three days, while the USD/CLP earns 0.19% today, operating currently over 942.91.
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 next key resistance is at 1,007.73, maximum of April 9. To the south, the immediate support is 928.21, minimum of May 9.
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.
