Weekly outlook for USD/COP
Source: FxWire Pro - Commentary / 08 Dec 2014 01:04:01 America/New_York
Quotes from Scotiabank:
-This week's main event is likely to be the release of BanRep's MPC meeting minutes. On the monetary policy front, our sense is that the central bank is now in "neutral territory", and we expect the minutes to confirm this view. For down the line,we see risks that the drop in oil prices, as well as the weakening of COP, will dampen the country's growth, and put the central bank back in easing mode later on, although the Fed's policy stance shift is a risk that could derail this prospect.
-For the coming few months, we expect BanRep to signal a pause. What we will be more interested in, is the central bank's views on the peso. FinMin Cardenas has signaled that he views the peso as fairly valued at this levels, and seemed relatively comfortable with the depreciation.
-It will be interesting to see if that view is widely held by the central bank, as well as whether somesconcerns are present over the speed with which the adjustment has taken place. Our sense is that the move in USD/COP has been somewhat overdone for the near term (barring another leg down in oil prices), but we are wary of catching falling knives.© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.