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FyF Advise New Recommendation

CHILE
  • Yesterday Felices y Forrados published a new recommendation. Their new advice suggested a shift from a 70% Fund A (offshore) / Fund E (onshore) allocation to 50% A / 50% C. The explanation for the move states their desire to reduce exposure to local rates by shifting from E to C.
    • All in all, the expectation is for a marginal increase in offshore allocation which could be translated as marginally bearish development for the Peso.
  • Judging by the open and a further 1% rally in Copper Futures, markets do not seem particularly bothered by the influential advisor's change in stance. Another brief touch below 700 post open has been faded as EMFX faces headwinds from the rise in US yields.
  • As expected, nothing sold by Hacienda yesterday as they have reached their $2 billion limit. BCCh continue to buy their $40 million per day.

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