May 24, 2024 12:55 GMT
USDCLP a Touch Lower Following BCCH, PPI Data Upcoming
CHILE
- The softer greenback on Friday has offset any modest dovish interpretation of the BCCh statement overnight, where the central bank signalled that interest rates would be cut further ahead. USDCLP trades 0.33% lower, broadly in line with the dollar indices.
- April PPI data is due at the top of the hour and is the only notable data point before next week’s retail sales and production data. Elsewhere, President Boric leads the home delivery ceremony at the Pan American Village and the Minister of Economy, Development and Tourism Grau heads the Pro-Growth and Employment Cabinet.
- Overall, the current technical bear cycle in USDCLP remains in play and last week’s extension lower, together with Monday’s follow through, reinforces current conditions. The recent break of support at 935.63, the Mar 15 low, marked an important technical breach and highlighted a stronger reversal. 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg, has been pierced. A clear break of this level would open $870.45, the Dec 29 ‘23 low. Initial key short-term resistance has been defined at 918.49, the 20-day EMA.
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