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Copper Surge Likely To Place Further Downward Pressure On USDCLP

CHILE
  • USDCLP made fresh 2021 lows at 692.20, below important 693 support. Despite closing just above at 694.92, the Chilean Peso looks set to continue it's recent strong performance as Copper prices surge a further 2.65% to commence the week. A confirmed break would confirm a resumption of the broader downtrend that started March 2020 and would open 686.05, 1.618 projection of the Oct 15 - Nov 9 - Nov 24 price swing.
  • Hacienda dollar supply continues at a daily pace of $150 million, partially offset by BCCH daily purchases of $40 million.
  • In a very light data week, focus will be on BCCh rate decision on Thursday, where all analysts currently expect the overnight rate target to be maintained at 0.5%. Consensus appears to be converging of potential lift-off later this year or early 2022 so any clues as to any discussion of/the potential timing will be eagerly anticipated.

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