MNI: BRAZIL CENTRAL BANK HOLDS SELIC RATE AT 10.50%

MNI: Rough Transcript of Powell's July Press Conference

MNI: Comparison of Powell's Opening Statement - July vs June

MNI China Daily Summary: Wednesday, July 31

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 433.0M JUL 26 WK

MNI: US NAR JUN PENDING HOME SALES INDEX 74.3 V 70.9 IN MAY

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USDCLP Closes Up 2.4%, BCCh Decision Due Next Monday

CHILE
  • Following the announcement of a new program to boost the central bank’s USD reserves, USDCLP staged a very strong rally on Monday which saw the pair close back above 800 at 807.62. We note that key short-term resistance remains much higher at 837.15, the Mar 17 high. As LarrainVial noted, the impact of the $10b program should be limited as it involves buying just $40m per day in a market that trades $1.5b daily.
  • The central bank’s economist survey highlighted that consensus expectations remain for an unchanged decision at next Monday’s BCCh meeting. However, building expectations for forthcoming monetary easing are well summarised by Santander here:
  • “We estimate that the conditions to start the process of cuts in the TPM are beginning to be validated. It is likely that at the next Monetary Policy Meeting on June 19, the Council will consider the option of lowering the rate, even though it will most likely maintain it. Then, at the next meeting, at the end of July, with new CPI data that confirms the rapid downward trend in inflation and an Imacec that shows a significant increase in slack, the Council could start the cuts. Once these start, the decreases will be of significant magnitudes to gradually moderate the degree of contraction of monetary policy and reduce the risk of an over-adjustment of the economy. The market has aligned itself with this vision.”
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.