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Chilean Peso Outperforming As Copper Rallies Further

LATAM FX
  • Seeing a notable divergence in Latam FX today, with the Chilean peso outperforming on the back of the further rally in copper prices, while the Mexican peso has fallen to its weakest against the dollar since late February.
    • USDCLP is down 1.1% currently, buoyed by the further 2.3% rally in copper prices. Support to watch remains much lower at 935.63, the Mar 15 low. Capital Economics expect the headwinds for the peso to unwind as the easing cycle enters a slower phase and yield differentials with the US moving in favour of CLP in H2.
    • USDMXN is up by more than 1% at the time of writing, despite more hawkish comments from Banxico Deputy Governors Heath and Espinosa yesterday. A continuation higher would signal scope for a climb towards 17.3860, the Jan 17 high.
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  • Seeing a notable divergence in Latam FX today, with the Chilean peso outperforming on the back of the further rally in copper prices, while the Mexican peso has fallen to its weakest against the dollar since late February.
    • USDCLP is down 1.1% currently, buoyed by the further 2.3% rally in copper prices. Support to watch remains much lower at 935.63, the Mar 15 low. Capital Economics expect the headwinds for the peso to unwind as the easing cycle enters a slower phase and yield differentials with the US moving in favour of CLP in H2.
    • USDMXN is up by more than 1% at the time of writing, despite more hawkish comments from Banxico Deputy Governors Heath and Espinosa yesterday. A continuation higher would signal scope for a climb towards 17.3860, the Jan 17 high.