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CLP Gaps Higher On Strong GDP, Reverses With US Yields

CHILE

USDCLP gapped lower on the open following a weak dollar post Fed and stronger than expected GDP figures released this morning. The pair has most recently caught a bid amid the continued pressure on US Tsys, and has filled the gap from yesterday's close at 729.36, now +0.2% on the day.


Recap of the data releases:

  • Chile Q4 gdp expands 6.80% Q/q; Est. 6.4%
  • Chile Q4 GDP 0.0% Y/y; Est. -0.4%
  • Chile 4Q Current Account Surplus $503m; Est. $818m Surplus
    • Most recently, Capital Economics raised their Chile '21 GDP est. to 9% from 6.5%.

Separately,

  • Chile's Treasury to sell CLP330b ($452m) in 6-month bills, CLP130b in nominal 2030 notes and 4.2m UF ($170m) in CPI-linked 2030 notes.
  • Hacienda also approaching their limit for USD sales for the month, having completed $1.56 Billion of the $2 billion as of yesterday.

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