The CAD to CLP exchange rate is currently bearish.
Key drivers include:
- A lower interest rate from the Bank of Canada, which may discourage investment and weaken the Canadian dollar.
- Volatile commodity prices, notably oil, which is crucial to Canada's economy; oil is trading above its 3-month average, which could provide some support to the CAD if prices continue to rise.
- Rising unemployment in Canada has raised concerns about economic growth, impacting investor confidence in the CAD.
The near-term trading range for the CAD against the CLP is expected to remain within a moderately stable range.
An upside risk is a significant increase in oil prices, which would benefit Canada’s export revenues. Conversely, a downside risk is further deterioration in Canadian employment data, exacerbating pressure on the CAP and worsening its exchange rate against the CLP.