Colombia Consumer Price Index (YoY) meets forecasts (5.35%) in January

💡 DMK Insight

Colombia’s CPI hitting 5.35% aligns with expectations, but here’s why that matters now: Stable inflation figures can influence the Colombian peso’s performance against major currencies, particularly if the central bank maintains its current monetary policy. Traders should keep an eye on how this CPI reading impacts interest rate expectations in Colombia. If inflation remains steady, it could reduce the likelihood of aggressive rate hikes, which might stabilize the peso in the short term. However, any unexpected shifts in global economic conditions could still create volatility. Watch for key levels in USD/COP; if it breaks above recent highs, it could signal a bearish trend for the peso. On the flip side, a strong peso could benefit Colombian equities, particularly in sectors sensitive to currency fluctuations. For now, monitor any comments from the central bank regarding future monetary policy, as they could provide insights into potential shifts in the market. Keep an eye on the upcoming economic data releases, as they could further influence trader sentiment and positioning.