How did this Tuesday, August 16, start?

The price of the dollar in Colombia changed its trend this Tuesday -August 16- and left behind the constant price drops of last week, which put it below 4,200 pesos, and for today’s session it recovers much of the ground ceded in previous days, despite the fact that fears and expectations remain due to the announcements made by the Fed, regarding its interest rates.

Although, according to the Colombian Stock Exchangethis currency opened operations with an initial price of 4,174 pesos, 9 below the Representative Market Rate that was set for today by the SuperFinancial at 4,185 pesos and 49 cents, quickly corrected its trend and began to rise.

In its first movements in the local market, the dollar initially fell to a minimum of 4,155 pesos, implying that it would drop, due to the fear that exists in international markets due to the ghosts of recession that do not go away completely in some countries. since the effect generated by last week’s optimism has already passed.

However, with a cutoff at 9:00 in the morning, it marks a strong upward trend and for now it quotes a maximum price of 4,217 and an average of around 4,211 pesos, thus returning to the values ​​that were seen last Wednesday, when it began to plummet to the values ​​already mentioned.

For Juan Eduardo Nates, an analyst at Credicorp Capital, for now there is a bit of stress among investors, since many companies are reducing its profit projections for the next year, anticipating a reduction in consumption, thanks to recent increases in interest rates.

We wake up with the markets in the typical stress of recession fears that are still unfounded in the Fed raising interest rates. Basically we have had some companies where traders are looking at how companies have been projecting lower profits for the next year and this is obviously based on the interest rate hike and with this, a lower expectation of consumption for the coming months”, said this expert.

Last week was marked by the appreciation of local currencies, including the Colombian peso, driven by the calm in the United States markets, which relaxed a bit after the inflation data revealed by the White House, which gave a respite from the pressures that were being experienced.

“The dollar again pressured higher, with a DXY that is already close to 106.85, a euro that returns to the 1.01 that we saw after passing a maximum of 1.03 last week. An oil that returns strongly, 95 in the case of Brent and 85 for WTI, and this has pressured commodities in a certain way, which are also correcting downwards after the optimism of last week”, added this expert.

Oil prices fell sharply on Monday and US WTI fell below the symbolic level of $90 after disappointing data on the Chinese economy and the possibility of an agreement with Iran on its nuclear program.

In London, the barrel of Brent from the North Sea for delivery in October lost 3.10%, to stay at $95.10. Meanwhile, in New York, the West Texas Intermediate (WTI) for delivery in September fell to 89.41 dollars, with a loss of 2.91%.

“We see a Colombian peso that broke 4,200, again this important support within the volatility and for today it moves in a barrier between 4,150 and 4,125 pesos, which would be the support prior to these new highs this year”, he explained. John Edward Nates.

For today the expectation in Colombia is in the data of the Indicator of Follow-up to the Economy that reveals the Dane, with which it will be clarity on the effects of inflation in the country and whether finally, as feared, it began to affect national production.

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