- The US dollar falls to the Chilean peso, operating when writing about 937.58.
- The dollar index (DXY) advances 0.10% today, consolidating at May 23 at 99.70.
- Copper prices lose 1.26% daily, reaching minimums of three days in $ 4,6302 per pound.
- The look of investors will be today on the publication of the FOMC minutes.
The USD/CLP established a maximum of 938.99, attracting aggressive vendors that dragged parity to a minimum of the day in 936.98. Currently, the USD/CLP loses 0.10%, currently quoting at 937.58.
Chilean weight gains land prior to the publication of FOMC minutes
The dollar (DXY) index has a 0.10% gain on Wednesday, visiting top of three sessions at 99.88, signing its second consecutive rise.
On the other hand, copper prices slide 1.26% in the day, visiting May 23 at 4,6302, spinning three consecutive days with losses.
The focus of the operators will be in the publication of the minutes of the Federal Open Market Committee of the Federal Reserve, where the officials of the Central Bank are expected to show clarity on the rhythm of interest rates, considering the tariff uncertainty caused by the commercial rhetoric of Donald Trump.
In this context, the Chilean weight listed on positive terrain for fifth consecutive session, while the USD/CLP loses 0.10% daily, staying within the operational range of May 27 in 937.58.
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 closest support is located at 928.21, Pivote Point of May 9. Downwards, the following key support is 915.57, minimum 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.
