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Strong USDCLP Turnaround Since Open, BCCH Minutes Tuesday

CHILE
  • The minutes from the central bank’s October 26 meeting will be released on Tuesday. As a reminder, the board surprised markets by unanimously deciding to cut the monetary policy interest rate by a smaller-than-expected 50bps to 9.00%. Furthermore, in an effort to contain the weakening peso, the central bank also announced it would suspend the reserves accumulation program as well as the gradual reduction of its NDF position. Details of the discussions around all these topics will be closely monitored.
  • After a positive open for the peso on Monday, USDCLP has resumed its upward bias and is now closing in on Friday’s highs around 920, up 0.65% on the session. An extension of last week’s gains would signal scope for a climb towards key resistance and the bull trigger at 955.00, the Oct 16 high.
  • Chilean copper producer Codelco will probably increase output to 1.34 million metric tons in 2024, the company’s newly appointed CEO Ruben Alvarado said in a interview with La Tercera newspaper. The CEO sees the company increasing its debt levels and said “we still have room. That is part of a very consensual strategy with the finance ministry”.

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