- The US dollar goes back to the Chilean peso, currently quoting at 938.07.
- The dollar index (DXY) falls 0.49% daily, staying within the operational range of the previous session.
- Weekly applications for US unemployment subsidy are increased to 222,000 in the week that ended on April 19, exceeding market estimates.
- The requests for durable goods rise 9.2% in March, above the planned 2%.
The USD/CLP marked a daily maximum in 942.13, finding vendors that brought parity to minimums of more than three weeks not seen since March 31 in 933.83. At the time of writing, the USD/CLP loses 0.34% on Thursday, operating currently 938.72.
The Chilean weight signs its fifth consecutive day with profits
According to information presented by the United States Department of Labor, weekly unemployment subsidy requests increased by 222,000 in the week that ended on April 19, exceeding the 221,000 expected by the market and the 216,000 observed in the previous week.
On the other hand, the US Census Office announced that the requests for lasting goods increased by 9.2%, above the planned 2% and from the 0.9% previously recorded.
After this news, the dollar index (DXY) loses 0.46% in the day, consolidating within the range of Wednesday session at 99.44, ending with a streak of two consecutive days upwards.
In this context, the Chilean weight lies upwards for the fifth consecutive day, while the USD/CLP falls 0.35 % % on Thursday, reaching minimums of more than three weeks not seen since March 31 in 933.83.
Technical levels in the USD/CLP
The USD/CLP reacted down from a short -term resistance given by the maximum of April 9 in 1,007.73. The next key resistance is observed at 1,017.05, maximum of January 17. To the south, the important 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.
