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LATAM

COLOMBIA - Overnight we saw Colombia CPI come in ahead of expectations. CPI m/m for Dec was 0.38% vs expected 0.19% with the annual figure printing 1.61% vs 1.45%. Despite being widely expected that inflation would recover, this will be a welcome signal for the central bank and especially to those board members that voted for a rate cut at the previous meeting.

  • Any rhetoric from the new Governor Villar will be closely monitored in the coming weeks.
  • USDCOP was marginally higher as Bogota announced a new set of lockdowns, closing at 3446.24 (Up 0.4%).

CHILE - The Chilean Peso continued its run higher, gaining 0.5% outperforming its LatAm peers and dealing just below 700.00 for the first time since July 2019. Rising copper prices, strong momentum, and positioning factors has allowed the Peso to enjoy several tailwinds. Additionally Hacienda's announcement of continued Dollar Sales keep the flow balanced in favour of further CLP appreciation.

  • USDCLP has now broken previous mentioned support area at 701 and has opened at 694 (Down 0.71%).

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