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Stronger Commodities Backdrop Supporting Andean FX

LATAM FX
  • The recovery in commodity prices today is helping Andean FX to outperform, with both CLP and COP posting solid gains against the dollar. Copper prices have risen by 0.8%, underpinning a 1% gain for the Chilean peso against the dollar, while COP has risen 0.5%, supported by a 0.5% rise in WTI crude prices.
  • For USDCLP, currently trading around 944, attention is still on key short-term resistance and a bull trigger at 956.73, the Jun 27 high. Key support has been defined at 929.78, the Aug 1 low.
  • Looking ahead, July CPI inflation data will be released in both Chile and Colombia on Thursday, with the headline rate expected to edge up in Chile, but finally dip below 7% in Colombia.

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