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Copper Surges To Best Levels Since 2012, Buoys Peso

CHILE
  • Conditions still appear to be in place for Chile outperformance. Copper climbed to the highest level since 2012 as further bouts of risk-on sentiment in global markets helped to lift equities and put pressure on the dollar. Prices extended gains yesterday after copper's best week since July.
  • Additionally, the Covid situation is undoubtedly improving with Chile lifting quarantines in 23 municipalities amid improving daily cases. Combined with the progress in vaccination campaigns, it is unsurprising to see USDCLP open towards it's most recent lows, hovering just above noted level of 7.11. A break would expose the potential for a deeper sell-off with the major support at 693.00, Jan 6 low.

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