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USDCLP Opens Lower On Above-Estimate CPI, Softer Greenback

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  • USDCLP is trading over 1% lower following the above-consensus inflation data, only declining to 12.3% Y/y. The notable uptick for Core SAE M/M, which jumps to 1.1% from 0.2% previously will be of concern to the central bank and is underpinning the CLP strength in early trade on Wednesday.
  • Additional tailwinds for the Peso are a solid bounce in the price of copper over the past two sessions and continued Hacienda USD supply which has seen $140 million sold at each of the past few sessions.
  • Furthermore, the trade surplus widened to $2.6 billion in January despite copper exports dropping to the lowest since the height of the pandemic.
  • Both the central bank economist survey and the BCCh minutes are scheduled for release on Friday. There are no further economic data releases due this week.

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