A default could rock global markets and plunge the U.S. into recession, but talks between the administration and Republicans have made progress. Meanwhile, the price of copper was US$3.68 per pound.
Starting this Friday, the exchange rate showed some downward pressure in its first move. After averaging $809 yesterday, it hit a low of $804 today.
The foregoing is influenced by the struggle between the US government and Republican lawmakers. They insist on keeping the US government in power. Joe Biden Cut government spending and raise the debt ceiling.
But the White House reiterated that the suspension of payments was “not on the table.”
Negotiations between the two sides made progress. And they preliminary analyzed that the country would raise the public debt ceiling for two years while limiting spending on most items.
“The American market is waiting for this deal. A default could shake global markets and plunge the U.S. into recession.” commented Giovanni Pino, market analyst at XTB Latam.
he copper Meanwhile, it is up 1.79% so far in today’s market trading, $3.68 per pound.
“This recovery comes after red metal fell 4% last Wednesday to a six-month low following disappointing economic data from China, the world’s largest consumer,” Pino said. rice field.
All in all, according to XTB Latin America analysts, if copper prices continue to rise, The exchange rate could fall into the $805-$798 area.
“on the contrary, Dollar could hit resistance at $808 and $816 if commodities fall At the end of the day,” he expected.