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USDCLP Extends Impressive Recovery Amid Further Copper Weakness

CHILE
  • USDCLP is extending its substantial advance on the open Wednesday, following BCCh President Costa’s dovish comments on inflation, which suggest scope for the central bank to continue its aggressive easing stance. Lower copper prices today will also be weighing on CLP. USDCLP is now well off its recent lows and has cleared its 20-day EMA at 961.93. A clear break of this would be a bullish development and open the bull trigger at 990.67, the Feb 26 high.
  • On the data front, the domestic calendar is empty today, with focus turning to the Fed. Later this week, February PPI data will be released on Friday, before the BCCh publishes its traders survey next week. This will provide information on market interest rate expectations ahead of the next BCCh MPC meeting scheduled for April 2.

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