The Republic – Colprensa
The TRM that applies for this entire weekend and until Monday will be $4,777.73
This Friday, the dollar marked the closing price of $4,801.00 and traded at an average of $4,777.83 on the Set-Fx platform, which meant an increase of $35.78 compared to the Representative Market Rate (TRM), which for today is $4,742.05.
In the intraday negotiations they showed highs of $4,802.67 on the Set FX platform, lows of $4,745, and US$1,046 million were negotiated in 1,506 transactions. The currency returned to trade above $4,800, a barrier that had already been overcome in the week.
According to Bloomberg, the decline in Treasuries has accelerated and stocks struggled on speculation that interest rates will be higher for longer, with next week’s inflation report seen as a litmus test for the ability of the Federal Reserve to control price pressures in the midst of the most aggressive tightening cycle in decades.
The consumer price index for January will be highly scrutinized, especially following a positive labor market reading prompted a barrage of hawkish comments from central bank officials. Core inflation will either point to the obvious need for the Fed to move further into tightening territory or reflect the progress policymakers have made in securing the anchor for inflation expectations, says Ian Lyngen of BMO Capital Markets.
“The optimism of the new year faded quickly as investors recalibrated expectations for the future following the employment report”Lyngen added. “As it currently stands, investors are biased for an upside surprise vs. the core CPI consensus of +0.4% m/m.”
Petroleum
The barrel of Brent oil, the reference for Colombia, rises 1.55% to US$85.91; while WTI increases 1.58% to US$79.29.
Archyde.com, for its part, points out that oil might resume its bullish run in 2023 as Chinese demand recovers following the restrictions were removed due to the covid and because the lack of investment limits supply growth, they told Archyde.com authorities from Opec countries, of which a growing number see a return to $100 a barrel as possible.
In 2022, oil soared above $100 for the first time since 2014 as demand rebounded from Covid-19 lockdowns in much of the world and Russia’s invasion of Ukraine added to concerns regarding the supply. However, Brent ended the year near 86 dollars due to fears of a global recession.
Going above $100 once more for a long period would mean more income for OPEC members, whose economies are heavily dependent on oil, and a setback for industrialized economies trying to rein in inflation and interest rates.
To prop up the market, the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as Opec+, agreed in October to cut production by 2 million barrels a day, regarding 2% of global demand.
