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EURJPY TECHS

Gains Considered Corrective

US OUTLOOK/OPINION

GS: Strong Core CPI Expected From A Number Of Categories

US EURODLR OPTIONS

Late Trade

USDJPY TECHS

Bullish Engulfing Reversal Still In Play

FOREX

Will The CHF Strength Drag Down Swiss CPI?

CHILE

JPMorgan on the BCCH decision:

  • Yesterday's monetary policy meeting was characterized by a more constructive central bank when it comes to the pace of economic activity.
  • The main innovation in communication came on forward guidance. The Board now signals the monetary policy rate (MPR) will be kept at its minimum of 0.5% for as long as it is deemed necessary for the recovery of the economy to take hold.
  • The Board dropped conditionality for the meaning of 'take hold', as well as the timing reference.
  • The Board is not providing the 'several quarters' time reference anymore, in a clear hawkish tweak and a continuation of more hawkish guidance.
  • They entertain the monetary policy rate at 1.0% by the year-end and 2% by year-end 2022, with the Fed stance as the main risk to a more rapid tightening schedule.