INSUBCONTINENT EXCLUSIVE:
The USD/COP exchange rate is trading at 4,421.5 as of this morning (April 9, 2025), continuing its sharp upward trajectory that began late
last week.This represents a significant depreciation of the Colombian peso against the US dollar, with the currency pair hitting levels not
The current mid-market exchange rate stands at approximately 4,425 COP per USD.Yesterday (April 8) witnessed extreme market volatility
falling 10% and the Nasdaq dropping 11%
This severe market turbulence has spilled over into currency markets, with emerging market currencies taking a significant hit.Key Drivers
States -China trade tensions
Turbulence: Colombian Peso Falls Victim to Global Risk-Off Sentiment
effect today, further exacerbating global market anxiety
This has accelerated capital outflows from emerging economies like Colombia, as investors flee to safe-haven assets.Interest Rate
and declining inflation (recently reported at 5.09%, down from 5.28%) are putting additional pressure on the peso.Technical AnalysisThe
USD/COP is now trading significantly above its key moving averages:5-Day MA: 4,145.720-Day MA: 4,129.750-Day MA: 4,160.0This positioning
above all major moving averages confirms the strong uptrend in the pair
The 9-day RSI stands at 43.93%, suggesting the currency pair has room to move higher before reaching overbought territory.Market
However, the positive impact of recent crude oil price increases appears to be overwhelmed by the negative sentiment from the escalating
trade war.Capital FlowsBroad risk aversion has triggered significant capital movements
United States -listed ETFs saw outflows of $3.2 billion at the start of April, with the SPDR S-P 500 ETF Trust (SPY) alone experiencing $6.5
This flight from risk assets is mirrored in currency markets, with investors seeking refuge in traditional safe havens.Forward OutlookMarket
participants are now awaiting several critical events today that could further impact the peso:Federal Reserve minutes from the March 18-19
figures at 8 a.m., which could influence broader Latin American currency trendsThe Colombian peso may face continued pressure as the full
