05/07/2024
The US dollar maintains its downward trend for the second consecutive day in the Colombian market, trading this Tuesday at an average price of $3,883. which represents a drop of $11.23 below the Representative Market Rate (TRM), which for today stands at $3,894.23.
The currency reached a maximum price of $3,885 and a minimum of $3,881 during the day.
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This behavior is attributed to the optimism that prevails in the market given the possibility that the United States Federal Reserve will begin to cut interest rates this year.
As reported by Bloomberg, US Treasuries rose on Tuesday, while US stock futures stabilized following Monday’s rally on Wall Street, buoyed by this optimism.
“In this environment of growth that is not recovering as much as we feared and that potentially cuts will occur, there are advantages for profits in the future” said Beata Manthey, head of European equity strategy at Citigroup Inc., in an interview with Bloomberg TV.
Investors are confident that the Federal Reserve may initiate a reduction in high rateswhile companies present positive results in their profits.
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“The market is taking a positive view on the U.S. jobs data and anticipating that the Federal Reserve will indeed be able to cut rates,” said Arnaud Girod, head of economics and cross-asset strategy at Kepler Cheuvreux in Paris.
Oil prices remain stable
In the oil market, prices stabilized on Tuesday, countering concerns about the conflict in the Middle East with the weakness of the physical market.
Brent futures fell US$7 cents, trading at US$83.26 a barrel, while West Texas Intermediate (WTI) futures in the United States traded without significant changes, at US$78.48.
Tensions in the region escalated with Israel’s attacks on southern Gaza and uncertainty over a possible ceasefire agreement.
However, The weakness of the physical market and the lack of optimism regarding the cessation of hostilities in the Red Sea and the reopening of the Suez Canal limited the rise in prices.
“I think the lack of optimism in recent days is more due to genuine weakness in the physical markets,” Tamas Varga of brokerage PVM told Reuters.
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