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CHILE: USDCLP Extends Gains to 1.30% on Session

CHILE
EM BulletBulletGlobalEmerging Market NewsRegion
  • Broad pressure on emerging market currencies and copper continue to weigh on the Chilean peso on Tuesday, which now takes over as the weakest performer in LatAm, declining 1.3% against the dollar.
  • There are no scheduled economic data releases which should keep the peso at the mercy of broader global themes ahead of Thursday’s BCCh decision, where the board are widely expected to cut rates by 25bps.
  • While USDCLP is trading just marginally above the level seen prior to the previous monetary policy meeting in early September, there has been significant volatility for the pair. After briefly slipping below 900, USDCLP has now recovered over 5.5% from the September lows, and this comes despite a 6% increase in copper prices through that same period.
  • We have noted that the extension of USDCLP’s recovery signals scope for further gains, towards 951.80, the Sep 10 high. Above here, 966.61 would come back into focus, the August high.
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  • Broad pressure on emerging market currencies and copper continue to weigh on the Chilean peso on Tuesday, which now takes over as the weakest performer in LatAm, declining 1.3% against the dollar.
  • There are no scheduled economic data releases which should keep the peso at the mercy of broader global themes ahead of Thursday’s BCCh decision, where the board are widely expected to cut rates by 25bps.
  • While USDCLP is trading just marginally above the level seen prior to the previous monetary policy meeting in early September, there has been significant volatility for the pair. After briefly slipping below 900, USDCLP has now recovered over 5.5% from the September lows, and this comes despite a 6% increase in copper prices through that same period.
  • We have noted that the extension of USDCLP’s recovery signals scope for further gains, towards 951.80, the Sep 10 high. Above here, 966.61 would come back into focus, the August high.