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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.
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Free AccessGoldman Sachs Upbeat On Chilean Peso
- Three Factors likely to support the Chilean Peso over the medium term:
- Evidence suggests that older, more fully-vaccinated age groups are seeing declining rates of new cases and severe disease. This should support an eventual reopening of the economy in coming months.
- Expect rates to start climbing later in the year, which should further support the local currency.
- CLP consistently scans as cleanest EM FX expression for significant copper rally which they still expect over the coming year.
- Recommend going long CLP on a roughly trade-weighted basis, given cross-currents affecting the broad Dollar. In particular, recommend going long CLP versus an equal-weighted basket of the five currencies with the largest weights in Chile's TWI (CNY, USD, EUR, BRL and JPY)
- Risks to CLP longs include:
- Low to negative carry, depending on the funding currency.
- Risks of a sustained wobble in the price of copper.
- Lingering questions around Brazil Variant and Sinovac efficacy.
- Tail risks around Chile's Constitutional Convention election in mid-May.
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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.