6 May 2015
Colombian peso remains neutral – BAML
FXStreet (Edinburgh) - Analysts at BAML keep their neutral outlook for the Colombian peso (COP), although with a negative bias as the central bank is expected to ease further.
Key Quotes
“Evidence is starting to accumulate that Colombia is suffering a strong deceleration in 1Q15. Most of the key activity indicators have shown lackluster performance and disappointed expectations”.
“We stay neutral on the Colombian peso with a negative bias”.
“We forecast the exchange rate to depreciate to 2700 by the end of 2015, above FX forwards”.
“The peso has appreciated strongly in the last month, driven by corporate demand for tax purposes and rising oil prices”.
“We expect a significant growth slowdown in coming months, leading the central bank to cut its benchmark rate”.
Key Quotes
“Evidence is starting to accumulate that Colombia is suffering a strong deceleration in 1Q15. Most of the key activity indicators have shown lackluster performance and disappointed expectations”.
“We stay neutral on the Colombian peso with a negative bias”.
“We forecast the exchange rate to depreciate to 2700 by the end of 2015, above FX forwards”.
“The peso has appreciated strongly in the last month, driven by corporate demand for tax purposes and rising oil prices”.
“We expect a significant growth slowdown in coming months, leading the central bank to cut its benchmark rate”.