May 15, 2024 11:14 GMT
USDCLP Extends Lower, Now 7.5% Below 2024 Highs
CHILE
- Finance Minister Marcel presented the latest Public Finances Report in the Senate today, where he announced a 20bp upward revision to the government’s 2024 GDP growth forecast to 2.7%. He also said that the government expects CPI inflation to average 3.8% this year, vs. 3.1% previously. Forecast revisions reflected the impact of rising copper prices as well as the stronger-than-expected start to the year.
- The Chilean peso continued its impressive recovery Tuesday, with surging copper helping USDCLP trade below 915 for the first time since January and now 7.5% off the 2024 highs. The pair cleared support at 922.80, a Fibonacci retracement level, and will now target the 901.73 lows from Jan 22. BBVA said that in general, given the continued pressure from low yield and carry, they have preferred not to chase the CLP rally.
- The central bank’s traders survey of expectations is due on Thursday and focus thereafter will turn to first quarter GDP figures due next week.
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