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Colombian Peso Faces Downside Risk as US Dollar Strengthens
Developing
In Short: TD Securities warns that the Colombian Peso's performance may fade as domestic conditions limit its downside against the US Dollar.
TD Securities notes that the Colombian Peso (COP) has been a top high-yield performer but sees its supportive mix of tight monetary and loose fiscal policy fading, according to [new FXStreet].
With Banco de la República’s (BanRep) hiking cycle nearing an end and fiscal consolidation expected under De La Espriella, TD argues that domestic conditions will increasingly limit USD/COP downside below 3000, leaving the pair more exposed to asymmetric upside risks on risk-off shocks, as reported by [new FXStreet].
The US Dollar remains under pressure, despite a rallying Japanese Yen, as support from hawkish Fed bets and geopolitical tensions fail to provide significant backing, according to [new FXStreet].
What's confirmed
What's still developing
- Single-source account; further confirmation still arriving.
Sources
- FXStreetlink