The price of the dollar in Colombia is again above 3,400 pesos this Friday. The US currency traded at an average of 3,409 pesos, rising 31 pesos against the TRM of the day that was 3,378 pesos.
Although in the first three sessions of the week, the currency had heavy losses, these were cut in the final two days.
In the course of the week, The currency lost 14 pesos. Monday’s TRM was $ 3,423.
According to Alexander Ríos, economic analyst at Strategic Consulting, again the refuge assets took effect before the weak US employment data.
Of course the coronavirus remains the main concern of market analysts.
The global environment continues cautiously, the portfolio investment seeks new refuge destinations and assets such as gold currently trading on the 1560 dollars Ounce, all this corroborated by the strength of the global dollar shown by the NYSE DXY index that continues with a strong upward trend; in contrast to the emerging EME index that closes a volatile week down, indicating short-term capital outflows from regional markets.
On the other hand, after historical highs marked this week in the US stock markets, uncertainty begins to appear before the data of a possible contraction of the Chinese economy of 0.5% according to estimates, this given the effects of the “Coronavirus” in said economy .
DRIVERS
Again a bearish week in the global crude oil market, in general a month of strong bearish movement in this market, going from $ 65 to $ 50 per barrel throughout the month, despite OPEC talks regarding the limitation of its production to avoid further falls in the level of world prices worrying situation for the local market, because a barrel under $ 50 would further push the upward exchange rate.
FORECAST
For Strategic, the trading range this week will be $ 3,400 and $ 3,480. If there is a part of tranquility regarding the spread of the virus, we could observe strong drops in the exchange rate close to 3,300 pesos per dollar.
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