This Monday the exchange rate traded with slight falls at the beginning of the day ($ 735), in line with the rise suffered by the copper on the London Metal Exchange, which is up 1% compared to Friday’s close.
It is a scenario that could “be punctual”said José Raúl Godoy, head of analysis at XTB Latam, “if we consider that the index dollar has begun to strengthen during the previous week mainly due to Janet Yellen, who will be the new manager of the United States Treasury.”
One of Yellen’s main goals is to lead the dollar down the path from strength to place once again on the podium of global currencies.
On the other hand, the markets this week will be attentive to transition process in Casablanca this Wednesday, which gives commodities a major breather.
“With Biden at the head of the United States we should see a relaxation of trade tensions with China, which would generally help raw materials to regain ground. This should generate a continuation in the recovery of the copper price, which is already consolidating above 3.5 usd / lb, ”explained Godoy.
For the XTB Latam expert, if we see a strengthened copper and a dollar starting a more upward trend, “we should be attentive to which instrument will strengthen more to assess the trend of the exchange rate.”
“At the moment, what we expect are floors in the exchange rate around $ 630, which should give impetus to see $ 750 ″, the expert finished.