The Canadian dollar (CAD) is currently leaning bullish against the Chilean peso (CLP).
Key drivers include the following: Canada’s jobs report exceeded expectations, with a drop in the unemployment rate bolstering confidence. Additionally, the Bank of Canada’s stable interest rate at 2.25% supports the loonie. In Chile, the Central Bank cut the interest rate to 4.5%, influencing the CLP negatively. The significant increase in copper prices, beneficial to Chile's economy, may not offset the effects of the interest rate cut.
Over the next few months, the CAD/CLP exchange rate is expected to trade within a stable range. Recent levels show the CAD at 649.8, 2.5% below its 3-month average.
Upside risks for the CAD could arise from further job growth or rising oil prices, while downside risks could stem from unstable global markets or any indication of future policy adjustments in Canada or Chile.