- The US dollar rises marginally in front of the Chilean peso, operating when writing about 928.08.
- The dollar (DXY) index rebounds 0.52% daily, reaching maximum of June 27 by 97.28.
- The price of copper decreases 0.90% on Thursday, consolidating within the operational range of the previous 5,0741 $ per pound.
- Non -agricultural payrolls of the US increased to 147,000 in June, improving market projections.
The USD/CLP marked a minimum of 925.33, finding buyers who brought parity to a daily maximum in 929.50. Currently, the USD/CLP earns 0.14% today, quoting at 928.08.
Chilean weight stabilizes after the United States key data
Based on information provided by the US Labor Department, non -agricultural payrolls increased to 147,000 in June, above the 110,000 scheduled and the 144,000 registered the previous month.
At the same time, the United States unemployment rate was 4.1% in the same period, improving 4.3% expected and 4.2% observed in May.
After this news, the dollar index (DXY) rebukes 0.49% in the day, visiting maximum of June 27 at 97.42, signing its second consecutive day to the rise.
Copper prices slide 0.90% on Thursday, staying within the range of July 2 in 5,0741 dollars per pound.
In this sense, the Chilean weight loses traction, while the USD/CLP advances 0.14% daily, consolidating within the operational range of the previous session at 928.08.
Technical levels in the USD/CLP
The USD/CLP reacted down from a short -term resistance given by the maximum of June 23 in 953.62. To the south, the closest support is observed at 915.57, Pivot Point of March 19.
USD/CLP daily graphics
US Dollar – Frequently Questions
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.
