The dollar in Colombia rose slightly this Thursday, one day after the GDP data

The price of the dollar in Colombia closed the day this Thursday, May 16, with a slight increase, on the day after the data of economic growth that the Dane presented.

According to the Colombian Stock Exchange, the US currency was traded at an average price of $3,829, that is, it rose 4 pesos compared to the Representative Rate Market price set for today by the Financial Superintendency at $3,825.

Alejandro Guerrero, foreign exchange associate at Credicorp Capital, the recent changes in the United States labor market are showing their influence on the behavior of the currency, since they shed light on what could happen with the Fed regarding interest rates. interest, in the midst of a panorama that is increasingly confusing.

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“We just had the weekly data on requests of unemployment benefits, which were relatively in line with market estimates, amounted to 222,000, while the Philadelphia Fed manufacturing index was somewhat lower than expected and reached 4.5 points,” said Guerrero.

After the opening, in its first hour of transactions, the dollar reaches highs of $3,830, while its lowest point is located at $3,823; which finally leaves an average price of $3,826.71; This leaves those who are betting on a rebound that will return it to the $3,900 barrier.

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“For the session, the most relevant thing will be the report on industrial production data in the United States for April, which is expected to grow 0.1%. Let’s say yesterday, After the inflation data, we finally had some weakness in the dollar,” Alejandro Guerrero added.

In this it is worth remembering that international oil prices ended higher last Wednesday, maintaining the pendulum movement observed for two weeks and affected by a stronger than expected contraction of US crude oil stocks.

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In London, the price of a barrel of Brent del Mar del Norte for delivery in July rose 0.44%, closing at $82.75. In New York, a barrel of American West Texas Intermediate (WTI) maturing in June increased 0.78% ($78.63).

“Today we have oil that remains above 83 dollars per barrel, in reference to Brent, WTI operates above 79.20, while the futures of the stock indices remain, let’s say, flat at this moment and the yield of the treasuries of 10 years it operates at 4.35%,” said the Credicorp Capital analyst.

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Finally, for what will happen with the dollar in the next few hours, we must take into account that inflation decreased slightly in the United States in April, in its first drop since January, good news for Joe Biden’s government ahead of the November elections.

The Consumer Price Index (CPI) – to which pensions and retirements are indexed – reached 3.4% for 12 months in April, 0.1 percentage points less than what was registered in March, as reported by the Department of Labor in a statement.

Meanwhile, for the local context, we must keep in mind that the fact that the Dane reported that the annual variation of the country’s economy was 0.7% for the period between January and March, only fueled the warning voices since the negative effects that are already seen could be aggravated. , due to the slowdown, in the labor market and tax collection, which are not doing well either.

This entity also highlighted that agriculture, livestock, hunting, forestry and fishing grew 5.5% and contributed 0.5 pp to the final data. However, it must also be noted that the bad time continues to be for the sectors that have been in the red for months (industry, commerce and construction), to which are now added financial activities, mining, information and communications and professional and scientific activities.

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