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Chilean Peso Resumes Downtrend, Shrugs Off Finance Ministry USD Sales

CHILE
  • CLP remains in unchartered territory after passing previous lows last week, with 1,000/USD level now in sight as the currency resumes its downward trend.
    • Initial resistance held yesterday at 931.09, the 1.0236 projection of the Mar 29 - May 12 - Jun 3 price swing, however, faltering copper prices and poorer risk sentiment should see further CLP weakness in store.
  • Lots of data to get through at 1400BST/0900ET:
    • May Manufacturing Production YoY, est. 4.4%, prior 1.7%
    • May Industrial Production YoY, est. -0.5%, prior -3.6%
    • May Copper Production Total, prior 421,742
    • May Commercial Activity YoY, prior 12.6%
    • May Retail Sales YoY, est. -5.9%, prior 19.9%

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