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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHILE
- The Chilean Peso has come under significant pressure once again at the open, with USDCLP rising over 3% to record levels above 1,020.
- The main contributing factor has been the headlines overnight from the central bank as noted in our JPMorgan post earlier. The BCCh doesn’t see a foreign exchange intervention as necessary at the moment with markets able to absorb shocks adequately, the bank said in a statement.
- Volatility in the currency market hasn’t transferred to other segments of the financial system, which have operated with adequate levels of liquidity.
- Full statement here: https://www.bcentral.cl/contenido/-/detalle/comunicado-11072022
- Additional pressures stemming from the downward trajectory for copper prices that have fallen roughly 2.5% on Tuesday and continue to provide an ongoing headwind for CLP.
- The moves come just one day before the July BCCh meeting. Despite the latest central bank economist survey forecasting a deceleration of the hiking pace to 50bp on Wednesday, the survey also sees the 2022 year-end rate forecast at 10.00% from a prior estimate of 9.50%.
- Figure 1: Chilean Peso Depreciates Roughly 23% From June BCCh Meeting
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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