The Colombian peso has slight profits against the US dollarquoting within Friday’s operational range.
He USD/COP It established a maximum of the day at 4,252.50, finding vendors that dragged parity to a daily minimum in 4,217.56.
At the moment, The USD/COP loses 0.03% on Mondaycurrently operating about 4,221.53.
The Colombian weight remains stable prior to the publication of key economic data
- The economic agenda includes the United States housing price index for tomorrow corresponding to the month of February, which is expected to present an increase of 0.3% compared to 0.2% recorded in February. At the same time, the Jolts job offers survey foresees 7.5 million positions in March compared to 7,568 million observed in February.
- The operators will be attentive on Wednesday to the ADP Employment Report, where 108,000 positions are projected in April to the 155,000 registered in March. In the same tonic, investors will have the focus on the preliminary gross domestic product of the United States. The consensus awaits an increase of 0.4% in the first quarter of 2025, less than 2.4% of the previous quarter.
- The Bank of the Republic of Colombia will announce its interest rate decision on April 30. The market projects that it remains unchanged at 9.50%,
- In this context, the Colombian peso is quoted with marginal profits, while the USD/COP loses 0.03% today, signing its third consecutive day down, reaching a minimum daily at 4,217.56.
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.
