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Firm Copper Prices, USDCLP Remains In Bearish Corrective Cycle

CHILE
  • USDCLP remains in a bearish corrective cycle. Last week’s sell-off resulted in a breach of trendline support drawn from last year's May 10 low. Furthermore, the 50-day EMA has been cleared. This suggests scope for a deeper pullback and opens 818.65, the Dec 1 low.
  • Strong copper prices and firm commodities in general are acting as an additional short-term tailwind for the Peso.
  • Annual inflation at 7.2% is continuing to bolster bets for continued aggressive action from the BCCh at their January 26 meeting.
  • Separately, today marks the final vote by Chile’s Senate on water reform bill.

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