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Hacienda Dollar Sales May Lead USDCLP Lower

CHILE
  • After briefly closing the opening gap and making new highs from yesterday at 738.55, USDCLP remained heavy through the late session and closed down 0.75% on the day at 731.33.
  • Certainly, Latam currency peers have rallied, however, the presence of Hacienda selling dollars may have aided the optimism in the peso.
  • They sold $100million yesterday (posted on the website) and reports are a greater amount may have been done today.
  • If the supply were to become consistent over the coming sessions, this has potential to reverse the current uptrend in place since Jan 21st.
  • Through 725.66 would see bears target key support that lies at 711.00, Jan 21 low.

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