Free Trial

Economic Activity/Copper Prices Keep Bullish Theme Intact

CHILE
  • Despite the bounce in USDCLP over month-end, amid protests relating to the third pension withdrawal, the Peso has bounced back. March Economic Activity printing 6.4% y/y (4.5% expected; -2.2% prior) along with bolstered copper prices supported local assets on Monday. A break of the 693 lows 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. 715.36, Apr 23 high is key resistance.
  • Hacienda have confirmed a maximum of $3 billion to be sold again in May, likely to keep the average daily pace at $150 million, partially offset by the usual $40m purchase from BCCh.
  • Today at 8:30am: Chile's central bank publishes its business perception report.
  • *On Monday, a lower-house finance committee approved a version of a mining royalty bill that includes a progressive rate on copper sales.
    • The government remain steadfastly against the bill, explaining that "companies would have to pay double the tax in Chile than in other leading countries in the industry".

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.