May 23, 2024 14:27 GMT
BRL & CLP Trading Close To Unchanged as BCCh Decision Approaches
LATAM FX
- USDBRL has also seen a moderate uptick following the stronger than expected US PMI data, with the pair now broadly unchanged on the day following the gap lower at the open. The recent pullback in USDBRL, since Apr 16, appears to have been a correction and markets will focus on key short-term resistance which has been defined at 5.1969, the Apr 30 high.
- Despite some sharp two-way action, USDCLP is trading in a relatively tight range today, as the market awaits the BCCh interest rate decision later. As a reminder, the central bank is widely expected to slow the easing pace further with a 50bp cut to 6.0%. Despite yesterday’s USDCLP rally, the current bear cycle remains in play, with attention on 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg, which was recently pierced. Initial key short-term resistance has been defined at 920.84, the 20-day EMA.
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