Bloomberg Line – The dollar started the week with setbacks, registering a drop close to 0.2% in the DXY indexin a context of little activity by the holiday in the markets of London and Tokyo. This Tuesday, The US currency extends its weakening compared to the G10 currenciesthus completing its third consecutive day in negative field, although it maintains mixed performance in Latin America.
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The ISM index of the services in the United States positively surprised, which, according to the analysis of BBVA FX Strategy, confirms robust growth in April and reduces the fears of a nearby recession.
This data also strengthens the scenario in which the Federal Reserve would maintain without changes its monetary policy at the meeting scheduled for this week.
On the commercial level, BBVA experts highlight The most constructive tone of President Donald Trump and the Treasury Secretary, Scott Besentregarding possible bilateral agreements.
RESAS DECISION.Wall Street prepares for the Federal Reserve decision this week.(Photographer: Michael Nagle/Bloombe/Michael Nagle)
However, the lack of concrete advances keeps the market in pause, with the dollar operating within narrow margins in the prelude to the Federal Committee of the Open Market (FOMC) planned for tomorrow.
In the Peruvian market, the dollar rises 0.18% to PEN $ 3,671, according to the data collected by Bloomberg.
Nevertheless, Both the Chilean weight and the Peruvian sun achieve some stability thanks to favorable exchange termswith copper and upward gold in the session. However, oil also bounces this Tuesday, After the strong correction of the previous day.
BBVA FX Strategy emphasizes that the attention of Latin American markets this week not only focuses on the evolution of the dollar and the federal reserve meeting, but also in the monetary policy decisions of the central banks of Brazil and Peru.
In Peru, the stage presents uncertainty. The market is divided by those who anticipate a pause in the reference rate of 4.75% and those who expect a cut of 25 basic points, backed by a significant portion of economists.
Rate decision in Peru.In Peru, the market awaits for the decision of the Central Bank.(BCR)
Although inflation was recently surprised, BBVA FX Strategy emphasizes that it has remained low in general termswhich would allow the Central Reserve Bank of Peru to act more flexibility.
The entity indicates that the strength of the Peruvian sun could be used in this context, and He adds that the currency has shown a low sensitivity to interest rates, a behavior that will probably be maintained in the short term.
