Thursday , November 26 2020

The dollar is rising in Chile and the world is waiting for Jerome Powell's conference

The dollar strengthens on international markets on a precautionary day among investors in the absence of macroeconomic data in the United States.

The dollar index – which measures currency performance against six currencies in the world – operates at an advance of 0.21% and is on track to mark its fifth consecutive day.

"At international level, investors have taken refuge in dollars after scarce macroeconomic references due to US closure. Due to the above, there are surpluses in high-risk instruments such as stock exchanges and commodities," explains Alpari Research analyst César Valencia.

On the other hand, President Trump's EU speech delivered yesterday did not deliver good news for the financial markets.

"There was no increase in tension, at least not significant, which could be considered a victory for investors who prefer when things don't get worse," says Paul Donovan, financial manager at UBS Global Wealth Management for Reuters. .

At the local level, at the end of the interbank market operations, the dollar was listed at $ 654.8, corresponding to an increase of USD 2.9.

The construction of the local exchange rate follows the negative impact of December, which recorded a 2.6% advance on the 3.3% analysts estimate.

In this way, the Chilean peso ignores the good performance in copper prices, a major reference for the national currency. Red metal contracts for March are up 0.25% and are $ 2.82 per month. Pounds in London, their highest level since last March.

"Today, the President of the Federal Reserve, Jerome Powell, will be pronounced. In this context, we must bear in mind that the main theme of the last conferences has been a much more conservative monetary policy indicating that we do not see interest rate hikes during 2019 or only One if this discourse is maintained, we could see a bearish opening for USD / CLP in this Thursday's session, "said XTB Latam analyst Carlos Quezada.

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