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New Constitution Committee To Be Created, Vote On Pension Borrowing

CHILE
  • The lower house will vote on a plan that creates a council of elected delegates and a committee of experts in charge of the next attempt at re-writing the nation’s constitution. The vote is set to happen at 10:00 local time.
    • Additionally on Wednesday, Chile congressional committee votes on bill permitting borrowing from retirement accounts. It is worth noting that the government’s proposal contradicts the pension system’s objective, central bank President Rosanna Costa said before a lower house committee on Tuesday.
  • Despite a more positive open for CLP, potentially owing to the ongoing outperformance for copper prices, the Peso has reversed course over the last hour. USDCLP has recovered into marginal positive territory on Wednesday after printing a fresh trend low at 821.47.
    • The continued move lower signals scope for an extension towards 807.85, the Jun 3 low. On the upside, initial resistance is seen at 858.40, the 20-day EMA.

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