If the dollar declines and copper continues to rise, the exchange rate may fluctuate between $850 and $870.
from yesterday, Tuesday, when the North American CPI was released, which was 7.1% compared to the previous year’s 7.7%, which Dollar is under pressure.
currency opened on this day $852,10. Copper, for its part, marked an increase of 0.40%.
Now what is relevant to the market movements would be Decision on interest rates by the US central bank: The question is whether it will be 50 or 75 basis points; And the future speeds up.
He explained to XTB Latam that advances in copper, meanwhile, are linked to the change that analysts at major investment banks have in mind as China begins to open up to the post-Covid-19 world. To change its GDP expectations for the year 2023 to 5.4%.
“It should also be added that some US legislators have introduced a bipartisan bill Chinese tech company Huawei Technologies Limited and Chinese 5G companies approvedRestricting their access to US banks, said Francisco Romain, senior market analyst at XTB LATAM.
The bill seeks to “severely punish” Huawei and other “unreliable” Chinese manufacturers, According to legislators, they commit economic espionage against the United States.
To all this, and if the dollar continues to decline and copper continues to rise, “we expect this to be a bearish day for the exchange rate, where prices may range between. $850 and $870″Roman concluded.