- The US dollar goes back to the Chilean peso, quoting when writing at 968.72.
- The dollar index (DXY) rebounds 0.275% daily, remaining within Wednesday’s operational range at 99.54.
- The price of copper reacts down after reaching maximums not seen from April 4 at $ 4,7185 per pound.
- The manufacturing index of the Fed of Philadelphia fell to -26.4 points in the month, its lowest level since April 2023.
- Weekly requests for the United States unemployment were located in 215,000, improving the 225,000 planned.
The USD/CLP marked a maximum of the day in 971.39, finding vendors that led parity to a minimum daily in 968.16. At the moment the USD/CLP operates over 968.34, falling 0.32% today.
Chilean weight gains ground after mixed economic data from the United States
Based on information presented by the Federal Reserve of Philadelphia, the manufacturing index collapsed to -26.4 points in the current month, worsening the estimates of 2 points and the 12.5 observed in March, registering its worst level since April 2023.
At the same time, the weekly applications of US unemployment subsidy were 215,000 in the week that ended on April 11, below 225.00 projected by analysts and the 224,000 recorded the previous week.
After this news, the dollar index rises 0.27% today, currently contributing to 99.54, consolidating within the range of Wednesday’s session.
On the other hand, the price of copper is brought down after reaching maximums not seen from April 4 in $ 4,7185, going back to 1.09%, operating currently over $ 4.60 per pound.
Investors will focus their attention today on the statements of Michael Barr, a member of the Board of Governors of the Federal Reserve.
In this context, the Chilean weight, quotes with profits, while the USD/CLP loses 0.31% in the day, currently operating in 968.34.
Technical levels in the USD/CLP
The USD/CLP established a short -term resistance given by the maximum of April 9 in 1,007.73. The next important resistance is observed at 1,017.05, maximum of January 17. To the south, the key support zone is located at 915.57, a pivot point 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.
