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USDCLP Retesting The Daily Trendline Break

CHILE
  • USDCLP has surged 1.35% in today's session. Local market participants are attributing the move to local pension funds being forced to rebalance portfolios to comply with the change in allocations toward riskier assets after another recommendation from Felices y Forrados.
  • As a reminder the research company said in March that it will close operations this year after Chile's congress approved a law that regulates pension advisors.
  • Highlighted below is USDCLP retesting the daily trendline that broke on April 15 which may offer some form of resistance, in line with our tech focus suggesting we remain in a downtrend.


MNI/Bloomberg

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