Chile’s drivers show positive signs: dollar is down; copper prices rising.

The currency fell by $1.8 to $983.01 in mid-morning trading, according to quotes in the major markets, after rising for the third time yesterday and reaching near its 17-month highs, again pressured upward by expected interest rate differentials between Chile and the U.S.

In the current session, Comex copper, the main export of Chile, advanced 1.25% to $3.92 per pound, its highest price since January 31. The metal is being supported by the latest comments from Chinese authorities, projecting growth higher than what the market expects, while the latest monetary support in the giant Asian economy has also generated optimism regarding its demand.

Published today during the Asian session, China’s exports have accumulated a 7.1% increase in the first two months of 2024 compared to the same period last year, which is well above analysts’ estimates. Imports also surprised on the upside.

“China is ascending in the value chain,” said Zhang Zhiwei, president and chief economist of Pinpoint Asset Management, adding that the data will likely reinforce policymakers’ confidence in the Chinese economy.

For today, market participants will be attentive to Powell’s second presentation before the U.S. Congress, in an attempt to anticipate the entity’s next moves. In this line, there are already some new U.S. employment data: labor costs surprised on the downside, and unemployment benefit claims rose slightly.

This occurs in the context of the visit of the President of Spain, Pedro Sánchez, during his tour of Latin America. The leader will meet with the President of Chile, Gabriel Boric, in the coming hours with the aim of deepening the ties between both countries and signing trade agreements with local entrepreneurs.