[ad_1]
The dollar in Colombia had a week of strong correction after three days of losses that led it to trade at $ 3,620 during the week. However, on Thursday and Friday this trend changed as it returned to bullish movements that pushed the dollar back to $ 3,700.
However, The currency accumulated losses in the week of 56 pesos, closing at an average price of $ 3,704. The TRM on Monday was $ 3,760. Weekly volatility was around 120 pesos.
This correction is due to the drop in the dollar globally. The DXY index, which indicates the relative strength of the dollar in the world, continues near 93 points, levels not observed since April 2018, which provides the idea of a weakening dollar.
This is in line with the fall in assets such as gold and the slow recovery of European markets, not very encouraging news for the Colombian market, as it indicates that for now the appetite for local risk assets is not high.
For its part, oil breaks below 40 dollars a barrel after holding almost 10 weeks above that level. Now again, the 35 dollars will be a bearish objective in this market and with this could lead to some volatility at the local exchange rate.
For Alexander Ríos Posada, economic analyst at Inverxia by Strategic, next week the markets will focus their attention on requests for unemployment benefits and inflation data for the American economy, where no strong surprises are expected after Jerome Powell’s speech about a passive position in the face of possible increases in short-term inflation in said economy.
The behavior of the local exchange rate continues to be structurally bullish, Therefore, in Inverxia By Strategic we consider that the technical trading range for the next few weeks will be between $ 3,610 and $ 3,820.
This within a normal movement. If there are fundamental data that generate increases in global uncertainty reducing interest in risk assets, we consider that the exchange rate could seek targets higher than $ 3,820 towards $ 3,900. Otherwise, if interest in Colombian assets is reactivated, $ 3,550 is estimated as a downward target level.
