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State Of Catastrophe Declared, USDCLP Highest Close This Year

CHILE
  • Two people have died amid severe flooding in the central-southern region of Chile on Monday, while thousands of others have been evacuated or left homeless from dangerous rains affecting isolated communities. President Boric declared a state of catastrophe on Monday while visiting one of the worst affected areas. It is the second severest storm to hit south-central Chile following a storm at the end of June that registered the heaviest unseasonal rains in 30 years.
  • USDCLP registered the highest close of 2023 on Monday, just above 870.00. Pressure on the Peso was mirrored by the Camara Swaps Curve, which shifted up by 7 to 10bps, in sympathy with the higher UST yields yesterday. With a light economic calendar this week, USDCLP's trading direction will likely be more influenced by global risk sentiment and copper prices.
  • However, it's expected to maintain its short-term bullish theme unless there's a significant market shift. The focus remains on 886.62, which represents the 50.0% retracement level of the Sep 26 ‘22 - Feb 3 bear leg.
  • BCCh member Pablo Garcia speaks at an annual event organized by the country’s mutual fund industry (2000BST/1500ET).

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