April 29, 2024 16:43 GMT
Andean FX Outperforming, Buoyed By Further Rally In Copper
LATAM FX
- Andean FX is outperforming Monday, with the Chilean peso gaining by 1% against the dollar at the time of writing and the Peruvian sol up by 0.5%, both benefitting from the further 2% rally in copper prices to a new two-year high. High yielders MXN and COP (+0.9%) are also benefitting from the decline in US yields today and expectation that BanRep will maintain a cautious tone at tomorrow’s MPC meeting.
- For USDCLP, today’s price action sees the pair continue to edge closer to initial support at 935.63, the Mar 15 low, a clear break of which would highlight a stronger reversal and signal scope for an extension towards 922.80.
- USDMXN dipped briefly back below the 17.00 level, printing a low of 16.9911. Attention remains on initial support at 16.8695, the 50-day EMA.
- USDCOP is back down to 3870, having traded as low as 3865, its lowest level since mid-April and 2.7% below last week’s high. BanRep is widely expected to deliver another 50bp rate cut to 11.75% tomorrow, with a cautious tone, although another split vote is highly likely.
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