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BCCh Traders Survey Expected, New Cabinet Announced

CHILE
  • Yesterday President Boric announced his third cabinet composition which included the naming of Aurora Williams as the mining minister. Williams had already occupied the same position between 2014-2016, during Michelle Bachelet government.
    • Other names announced include Javiera Toro as social dev. Minister, Nicolas Cataldo as education minister, Marcela Sandoval as national assets minister and Carolina Arredondo as culture minister.
  • Bolstered copper prices overnight may provide some relief for the Chilean peso at the open, however, USDCLP maintains a bullish technical tone overall, having extended further above key resistance (837.75). Differing opinions over the exact monetary easing path for the BCCh may elevate volatility for the currency in the short-term.
  • Additionally, lingering political risks surrounding the second process to re-write the constitution may provide additional headwinds for the Peso going forward. The key topside level for USDCLP is 886.62, the 50.0% retracement of the Sep 26 ‘22 - Feb 3 bear leg.
  • The BCCh will release the Central Bank Traders Survey, the first one since the surprising rate cut last month (1330BST/0830ET). On Friday, current account balance and GDP figures will be released.

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