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USDCLP Trades in Tight Range Ahead of BCCh Decision

CHILE
  • USDCLP has traded in a very tight range today ahead of this evening’s central bank interest rate decision, when a 25bp cut to 5.75% is expected at 2300BST(1800ET). USDCLP is currently 0.2% lower on the day around the 934 level, despite the uptick in copper prices today.
  • Having recently traded above the 50-day EMA – currently at 926.79 – scope is seen for USDCLP to climb towards 948.30, 61.8% of the bear leg between Apr 16 and May 20. On the downside, first support to watch lies at 900.00, the May 6 low.
  • While the BCCh may consider options of both 25bp and 50bp cuts later, it is likely to side with consensus expectations, as they did in May. The aggressive easing cycle to this point and a recent hawkish shift for both LatAm and global central banks further bolster the likelihood of a 25bp move.
    • The full MNI preview with analyst views is here.

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