Bloomberg Line – The dollar started the week with losses, With a fall close to 0.2% in the DXY index, in a context of low volume of operations due to the closure of the markets in London and Tokyo. On Tuesday, the green ticket gives ground to all the currencies of the G10 and complete three days in a row.
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The ISM report in the United States surprised up and BBVA FX Strategy underlines that This result suggests solid growth in the services in the US during Aprilwhich moves the fears of an imminent recession and supports the scenario in which the Federal Reserve I would keep stable interest rates this week.
On the commercial front, BBVA analysts also highlight President Donald Trump’s most optimistic tone and of the Treasury Secretary, Scott Besent, regarding the possibility of closing trade agreements in the next few days.
RESAS DECISION.Wall Street prepares for the Federal Reserve decision this week.(Photographer: Michael Nagle/Bloombe/Michael Nagle)
However, the lack of concretion keeps the markets waiting, with the dollar operating In narrow ranges before the Federal Committee of the Open Market (FOMC) planned for tomorrow.
In the Chilean market, the dollar falls -0.06% to CLP $ 941.43, according to the data collected by Bloomberg.
➡️ See the price of the dollar today vs. Chilean weight
In Latin America, BBVA FX Strategy reports a negative start week for the currencies of the regionweakened by technical and political factors, as well as the potentially more restrictive bias that Fed could adopt.
Chilean weight and Peruvian sun benefit from more favorable exchange termswith copper and gold as main engines. Today both metals rise, although also the price of oil after the collapse that occurred yesterday.
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According to Francesco Pesole’s analysis, foreign currency strolle in ING, The week in the US is presented with a low profile in terms of economic databeing the decision of the Federal Reserve the main event.
Pesole highlights that, in line with the market consensus, Wait for President Jerome Powell to continue to resist the pressure of the Trump administration to start a cycle of feat cuts.
Attentive to Powell.The market does not expect a change in the interest rates of the United States, but will be attentive to Jerome Powell’s speech.
Remember that Powell has recently reiterated that it is not possible to sustain a strong labor market without price stabilitywhich reinforces the vision that the first rate cut could only be given in September.
Currently, markets discount only 23 basic points for July, which reflects a contained expectation of flexibility. Pesole emphasizes that it does not anticipate a relevant impact of this FOMC meeting on the dollarsince the markets seem aligned with Powell’s recent rhetoric.
