The dollar-peso parity started downward, given the expectations that the United States announce commercial agreements with some of its counterparts, which could improve an economic landscape hit by the reciprocal tariffs of the Trump administration.
The dollar fell $ 11.7 to $ 938.2 at noon this Monday in Chile, in minimums of the sessionafter rebounding $ 14 last week in the Bloomberg series.
Most emerging currencies, mainly Asian, were strengthened in front of the green ticket. He dollar index -That compares the dollar with other “hard currencies”- fell 0.2% to 99.8 points. For its part, Copper Comex rose 0.4% to US $ 4.69 per poundalthough regulating major advances.
Red metal rise responds to “It can be affected by possible conversations between China and the US. He has been doing that since last week and with great volatility, “he told DF The MBI Investment Business Manager, Fernando Montalva. He observed that This would be influencing a Chilean weight “without much direction”while foreign agents have not significantly modified their positions in forwards exchange rate.
President Donald Trump declared that there could be commercial agreements this week. In general, the White House is expected to examine the proposals made by the European Union and that an agreement with Japan arrives in June. Of course, in relation to China, Trump said that at least in the next few days he has no plans to speak with his counterparts of the Asian country.
“The dollar weakens compared to all the currencies of the G10, together with the Mexican peso. The catalyst remains the trade and the possibility of a continuous improvement of the general perspectives, as The markets assimilate the comments of President Trump that point to trade agreements this week “Shaun Osborne and Eric Theoret of Scotiabank Global Strategies said early.
Fed Week
But much of the attention is also expected to focus on American monetary policy, since Wednesday the Federal Reserve Rate decision will take place, for which a maintenance of the key rate is expected.
“We hope that the president of the Fed, Jerome Powell, transmits the message that The labor market is still solid and high inflation, and that rates cuts are still far away. Of course, President Trump remains an unknown that looms in the background, but based purely on factors that we can reasonably anticipate, a restrictive thrust of the Fed should lead to the global dollar to strengthen, “wrote the head of macroeconomic studies in Monex, Nick Rees.
The global dollar depreciated even more after The ISM survey of April services would give new impulse to the yields of the Treasurysurprising up to all its main indices, and thus prolonging the effects of the non -agricultural payroll report published on Friday.
This service report – the most important sector of the US economy – continued to moderate the expectations of fed cuts. Now, in the implicit rates of the operations of futures three rate reductions are discounted in 2025, practically without space for an additional.
Rate differentials between Chile and the US would remain stable. “I do not believe that the Central Bank can do something very different from the Fed, and in the case of the latter you can see worse economic data on the margin, but a pickup In the most underlying inflation. On the central side, it is true that we had a good Imacec fact, but it is not enough to sing victory, and inflation has stabilized, but at levels higher than the counselors would like, “said Montalva.
