September 23, 2024 16:52 GMT
CHILE: USDCLP Falls 1% As Market Plays Fed Catch Up
CHILE
- The Chilean peso is outperforming on Monday, as the local market has reopened following a three-day break for national holidays, aided by the gain in copper prices over the period. USDCLP has fallen by 1% today to 922, bringing the pair below both the 20- and 50-day EMAs. The sell-off undermines the recent bullish theme and a continuation lower would expose support at 904.48, the Aug 26 low.
- Meanwhile, front-end camara swap rates have fallen 5bp or more, following the publication of the BCCh minutes earlier, which confirmed the dovish tilt of the central bank and likelihood of back-to-back rate cuts in the coming meetings.
- Following the release of the minutes, the central bank will publish its latest traders survey on Wednesday, after PPI data tomorrow. The next BCCh MPC meeting is not due until Oct 17.
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