Free Trial

F&F Allocation Shift Prompts CLP Weakness

CHILE

Another F&F allocation shift who now advise a 70/30 A/E distribution is the main cause for significant CLP weakness this morning. Despite the ongoing backlash from the Government regarding these recommendations, the local market flows remain volatile around such information. The announcement suggests a greater rotation into US equities from domestic assets, which can prompt CLP weakness in the interim.

  • Combined with broad based usd buying we are seeing USDCLP trading above 710 (+1.7%), having reached lows of 693 just yesterday.
  • Desks are reporting strong early action in both spot and the 1month from 709 to 709.50, with strong local buying.

Separately, *Chile posts trade surplus of $1.42B in Dec. (bbg)

This is versus an expected surplus of $1.57B.

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.