USDCLP Remains On Downward Trajectory

USDCLP has opened below the 711 support (down 0.8%) level and continues it's downward trajectory. Copper futures up another 2.5% as well as a softer Bloomberg Dollar Index (-0.25%) bolstering the tailwinds for the resilient Peso. We noted yesterday that desks reported steady model selling, amid some investors expecting CLP to play catch up to broader moves in EMFX.

• Another $120 million sold by Hacienda bringing the monthly total to $1.54 billion.

A couple of growth forecast revisions to note:

• Moody's - Raises its 2021 GDP forecast to 5.8% from 4.5% on the fast pace of the local Covid-19 vaccine process and strong demand for copper
• Santander - GDP expansion this year would be in the 5.5%-6.5% range, up from 4.5% previous estimate, due to the "rapid" vaccination process, a more dynamic end of 2020, and a more favourable external scenario, writes chief economist.