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Chile: The dollar falls more than $10 and trades below $940.

The dollar index fell 0.3% and two-year Treasury yields fell 6.5 basis points, while copper rose 1.2% to $4.5 per pound.

The dollar fell below $940 on Friday after a weak US non-farm wage report revived hopes for a start of monetary easing in the world’s largest economy in September, while the recovery in copper prices added provided support to the Chilean economy. peso.

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The dollar fell $10.65 to $936.85 in the Chilean market before noon, after falling to $933 in early trading, according to market data. The dollar index fell 0.28% and two-year Treasury yields fell 6.5 basis points, while the copper Comex rose 1.16% to $4.54 per pound.

The April labor report dominated headlines early in the day. Monthly wage creation was the lowest since October, annual average wage growth slowed to its lowest point in nearly three years, and the unemployment rate rose slightly.

The data came in worse than expected, and with that the market is starting to see the possibility of a rate cut before the end of the year in the US. If it is confirmed that the numbers may deteriorate in the future, we may see more pronounced exchange rate declines in the coming days.

None of this is terrible – it’s not really a “bad” report – but it is the first time in a very, very long time that we’re seeing all parts of the report being weaker than expected. As a result, the market is pricing in another 25 basis point rate cut in September and a second cut before the end of the year.

Martinez emphasized that the figures confirm the view of Fed Chairman Jerome Powell, who on Wednesday considered it “unlikely” to raise the policy rate and expressed confidence that monetary policy is sufficiently restrictive. This led to a $14 drop in the exchange rate on Thursday.

On Friday, the initial excitement over the wages report subsided an hour and a half later, with the release of the ISM services sector survey for April. Although the main index unexpectedly entered contraction territory (below 50 points), inflation fell. The sub-index grew more than expected, in a scenario very similar to the production survey that the same ISM published on Wednesday.