Latin American currencies suffer sharp falls correlated with US interest rate hikes, Jerome Powell is clear in his latest press conference and is betting on a recession to cool the economy saying ‘Our goal is a ‘ soft landing ‘it will be very difficult’, the difficult part practically refers to a recession even though it argues that the US economy is strong and can withstand interest rate hikes.
Central banks can attack consumption and this means that some companies could go into crisis in the coming months, the vast majority of Latin American countries are dependent on commodity prices and a recession would affect demand for commodities and generate strong corrections after big climbs.
The dollar in Colombia continues to rise and is approaching this year’s high and it is possible that it will mark new all-time highs.
One of the most searched things on the internet in Colombia is how to buy US dollars, this is due to political nervousness, what people should see is how the economy is doing in the region and the commodity prices what influences the price of the dollar the most, the political part makes noise for a while, then the price adapts to the real circumstances of the economy, the Colombian peso has started the year well and has been one of the currencies that after a sharp depreciation has been valued at record highs, this thanks to commodity prices at their all time high, but now with the restrictive policies of other countries, the economy may be affected if commodity prices correct for inflation, which is already sold in the vast majority of the media, moreover, the breakdown in china with its exaggerated zero covid policies is also affecting demand for commodities, the chinese thing is super rare, parf well it looks like they stopped it’s to cool the world economy ial, since if they were like before, inflation would be more complex to contain, world economic growth will fall and the best companies and with cash will survive , the dollar in Colombia is quoted at 4096 cops and is approaching this year’s high If this zone is broken, it is possible to go to the highs of the covid pandemic, where 1 dollar was worth 4220 cops. The Dollar continues to favor buying and may find support at 4,019 cops, as can be seen in the following chart:
Chart of the dollar against the Colombian peso over a period of 15 minutes source tradingview
COLCAP continues to fall and interest rate hikes in Colombia are approaching
The Colombian stock market index stands at 1,338.83 points and loses 33.37 points during Thursday’s session, which is equivalent to a capitalization loss of 2.43% Several factors explain the downward trend of this index , such as rising US interest rates and political uncertainty.
Investment chart source COLCAP
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