Free Trial

USDCLP Trend Conditions Remain Bullish

CHILE
  • After underperforming again yesterday, the Chilean peso has opened moderately stronger in Wednesday’s session, with USDCLP falling by around 0.4% in the early trade. Worth noting that Hacienda were back in selling dollars during yesterday’s session. Pullbacks continue to be corrective and sights remain on 996.97, the Sep 2022 high and the psychological 1000.00 handle. Initial firm support moves up to 967.68, the 20-day EMA.
  • On the back of the recent weakness, Itaú note that the CLP’s real effective exchange rate is rapidly approaching levels at which the BCCh has intervened in the past. However, they believe that an intervention is unlikely in the near term, adding that they expect CLP to appreciate in the second half of this year, once other central banks begin to ease monetary policy.
  • On the data front, nothing in the calendar today. February trade data will be published tomorrow, followed by key CPI inflation data on Friday.

To read the full story

Close

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.