May 29, 2024 13:25 GMT
USDCLP Rises 1.25% in Early Trade Amid Softer Copper/Risk Off
CHILE
- The Chilean peso has come under pressure in early trade Wednesday, with USDCLP rising 1.00% and trading back above 9.07. Sensitivity to struggling copper futures today are providing a peso headwind, combining with the pessimistic risk sentiment and associated greenback strength. Initial key short-term resistance has been defined at 914.59, the 20-day EMA.
- The pair now trades at fresh weekly highs, shrugging off Hacienda’s weekend announcement that they plan to restart their USD sales operation in June. For reference, dollar sales are projected to resume between June and August at a smaller weekly maximum of USD200 million.
- In Itaú’s view, USD sales are likely to be sourced from copper related revenues (usually USD300-400 million per month), as withdrawals from sovereign wealth funds nor offshore issuances have materialized since. They expect the MoF to sell towards the bottom of the USD8-10 billion range this year, including the USD1.92 billion they sold through March, below 2023’s USD12.2 billion.
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