COP best performer so far in 2018 – Rabobank

Senior Market Strategist at Rabobank Christian Lawrence noted the solid performance of the Colombian Peso so far this year.

Key Quotes

“COP is the best performing currency so far in 2018 with USD/COP looking like the mirror image of oil prices. We expect oil prices to remain the key for COP price action and in this respect we see further upside as somewhat limited given our call for oil to peak at around current levels before heading lower later in the year”.

“This, coupled with our call for the central bank to cut rates 25bp this year leaves us calling for USD/COP to trade back above 2900 in the second half of this year. That being said, looking nearer term, if USD/COP has a confirmed close below 2700 then we cannot rule out another leg lower to 2600 before our bullish USD/COP view comes into play”.