- The US dollar advances to the Chilean peso, currently quoting at 930.14.
- The dollar index (DXY) loses 0.13% today, consolidating within the operational range of the previous session at 96.99.
- Copper prices fall 1.58% in Friday’s session, reaching minimum of June 27 in $ 4,9599.
- Investors will be attentive to the Chilean consumer price index to make known next Tuesday.
The USD/CLP established a daily minimum at 927,9511, where buyers attracted that promoted parity to a maximum not seen from June 30 in 933.15. At the moment, the USD/CLP rises 0.25% operating over 930.14.
Chilean weight extends its losses in the middle of a day with little volume
North American markets remain closed today in commemoration of the United States Independence Day.
The dollar (DXY) index falls 0.13% daily, staying in the range of the July 3 session in 96.99, ending with two consecutive sessions with profits.
The price of copper slides 1.58% in the day, reaching a minimum of one week at $ 4,9599 per pound.
The Chilean weight is quoted on negative terrain for the second consecutive day, while the USD/CLP rises 0.25% on Friday, visiting maximums of June 30 in 933.15.
Technical levels in the USD/CLP
The USD/CLP formed a short -term resistance given by the maximum of June 23 in 953.62. Downwards, the closest support is observed at 922.51, minimum of July 2. The following key support is 915.57, a 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.
