1 Jul 2015
COP poised to weaken by year-end – BAML
FXStreet (Edinburgh) - The Colombian peso could lose further ground towards the end of the current year, suggested analysts at BAML.
Key Quotes
“In foreign exchange markets we stay neutral the Colombian peso with a bias toward selling it”.
“We like buying MXN/COP forwards. We forecast COP to end this year at 2700, almost 100 pesos higher that currency forwards”.
“Oil prices are a significant risk for the peso. Its correlation remains high at 0.32. We expect further declines in economic growth will prompt the central bank to cut interest rates in 2H15, putting pressure on COP”.
“Also, the sale of the government’s stake in Isagen has been postponed until a court ruling in August”.
Key Quotes
“In foreign exchange markets we stay neutral the Colombian peso with a bias toward selling it”.
“We like buying MXN/COP forwards. We forecast COP to end this year at 2700, almost 100 pesos higher that currency forwards”.
“Oil prices are a significant risk for the peso. Its correlation remains high at 0.32. We expect further declines in economic growth will prompt the central bank to cut interest rates in 2H15, putting pressure on COP”.
“Also, the sale of the government’s stake in Isagen has been postponed until a court ruling in August”.