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BCCh Downplays Announcement, Sell-Side See USDCLP Spike As Opportunity
Markets are digesting the announcements from the central bank regarding the increase in their international reserves. As mentioned yesterday, the BCCH released a Q&A statement later in the day. The key point is they do not believe it to be FX intervention and their measures should allow exchange rates to reflect their true fundamentals.
- Analysts have also noted that a similar announcement in 2011 saw a similar reaction spot markets; however, the impact of the moves were notably short lived.
- Notable sell-side also released notes using the price action spike to either take profit on USDCLP longs or reengage in shorts. USDCLP opens a touch weaker from yesterday's close.
*Separately, Chilean President Sebastian Pinera speaks at the Enade business summit.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.