The dollar was appreciated on Wednesday since the currency gained grounding and Cobre deepened its falls, after the Federal Reserve (Fed) Aguara the party of the investors who expected a somewhat more flexible tone, in moments of high uncertainty for the tariff war.
The local parity rose $ 6.21 to $ 946.91 once the operations have been completednot far from peak of $ 950 reached after noon, in the midst of high expectation before the Fed announcement.
Copper Comex sank 3.1% at US $ 4.63 per pound -mounds of the day-, and the dollar index recovered 0.5% to 99.7 points. Of course, American short rates remained firm with the general forecast of three official type cuts by 2025.
Wait and see
The Federal Open Market Committee (FOMC, acronym in English) maintained the federal fund rate in the range of 4.25% to 4.5%as expected. At the press conference, its president Jerome Powell insisted on the message of the statement: Trump administration tariffs are a challenge for the double mandate of the Central Bank, controlling inflation and favoring employment.
“Powell was very sharp in saying that the current scenario is waiting, because there is uncertainty that inflation can rise and employment continues at acceptable levels. To the quantitative adjustment (reduction of the balance sheet, an ongoing restrictive policy) or referred, and the market is reacting to that. Copper is already falling more than 3%, the dollar index It is upwards, and the dollar-peso, although with low liquidity, also rose a couple more pesos. This may impact tomorrow on the opening of the Chilean market “said a DF The CBO of Global66, Rodrigo Lama.
“The emphasis of the committee in the greatest risks for both employment and inflation reveals a vigilant approach to emerging economic pressures. The mention of the ‘oscillations of net exports’ that affect the data indicates that the Federal Reserve is aware of the external factors that influence its economic evaluation, which reinforces the complexity of the current economic landscape portfolio manager de Janus Henderson, Daniel Siluk.
Appointment in Switzerland
At dawn, what was dominated was the idea of possible approaches that contribute to display the commercial war between Washington and Beijing. Yesterday afternoon it was learned that the secretary of the Treasury, Scott Besent, and the commercial representative, Jamieson Greer, will travel to Switzerland this weekend to meet with a delegation headed by the Vice Primer Chinese Minister, He Lifeng. Of course, Besent told Fox News that Attention will focus on distension, rather than negotiating aspects of a commercial agreement.
“The positive announcement that there will be high -level conversations to reduce commercial tensions, has contributed to reinforce the improvement of the appetite for risk,” wrote the Head of Studies for the EMEA region and international assets at MUFG, Derek Halpenny.
He added that “trust was also favored by the decision of the Popular Bank of China to finally announce a monetary relaxation: A 50 -points base cut (PB) in the reserve and 10 bp requirements in the reverse repurchase rate to seven days. However, China had been giving signs that a relaxation of its monetary policy is coming, so the reaction has been moderate. “
