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Hacienda Sell $2Billion Limit For Feb, USDCLP Approaches 700

CHILE
  • $100 million sold by Hacienda yesterday brings them to the $2 bil limit for February and therefore we should just have BCCh $40 million to be bought for the remainder of the week.
  • The rally in MXN overnight and seemingly better risk sentiment in the region adds another tailwind for the Peso. Copper prices surging again overnight and continue to make fresh high since 2011. HG1 printed 422.65 earlier and is currently up 0.5% on the session. 454 highs from 2011 seem the natural primary target for the move.
  • USDCLP edging lower towards 700 with major support at 693 coming into focus.
  • Jan. PPI was released at 1.1% versus 2.7% prior. Flurry of data to be released on Friday including, Unemployment Rate, Retail Sales, Industrial and Copper Production.

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