At the moment, due to global factors and economic data from China that could boost copper, the greenback could move between $795 and $800.
The exchange rate began the session on Wednesday lower, mainly influenced by the dollar weakening globally and higher copper price levels.
The greenback opened at $799 and then dropped to $796. It only touched $800 at 08:32.
In domestic matters, the market is expectant at the votes in full and in particular of the Constitutional Convention.
According to what is projected by Juan Ortiz Godoy, market strategist at XTB Latam, the currency is at a key level of $800, so if it breaks down “we could see levels around $795.”
“Otherwise, we could see levels close to $810,” he added.
The expert explained that the news of the withdrawal of the troops that threatened the russia-ukraine border caused operators to prefer high risk assetswhich caused the weakening of the dollar globally.
However, he added, recent news from NATO aligns with that from Washington and indicates that there is still the danger of threat and that there is no evidence that Putin is withdrawing troops.
“If investors pay attention to the NATO talk, and indeed we don’t see any further news of troop withdrawals by the Kremlin, we could see a strengthening dollar. The fears about inflation could be in the background for a moment despite the fact that the Producer Price Indices data was released yesterday, which was well above expectations (9.7% vs. 9.1% annualized expected), which could impact the CPI for March results on the rise”, said Ortiz Godoy.
Yesterday the data was also known inflation in Chinawhich came out with a figure of 0.9% annualized, below the expected 1%, which gives the People’s Bank of China more room to carry out more expansive policies, “which are positive in times where the covid advances every year. once again in the Asian country”, said the market strategist of XTB Latam.
The above, he pointed out, could give copper a greater boost, which in turn could translate into a downward exchange rate at the local level.