Last week, the Federal Reserve decided upon a highly expected +75pbs, reaching an interest rate of 4.0%. However, this week’s fundamentals have led to an extended bearish adjustment of the US Dollar (USD). The EUR/USD pair reached over parity last week, driven by USD’s cyclical weakness. Regarding the EUR/COP pair, a downward movement has been introduced in response to an improving market sentiment in Colombia, and the perdurability of geopolitical tensions in the eurozone, which continues to discourage capital inflows. Starting this week, Latin American currencies have reversed their devaluation tendencies, in response to a bearish USD.
Ver más
