The CAD to CLP exchange rate is currently bearish, trading at 90-day lows near 655.8.
The primary drivers include the interest rate differential between Canada and Chile, with the Bank of Canada maintaining its rate at 2.25% compared to Chile's recent cut to 4.5%. Additionally, the Canadian economy benefited from a stronger jobs report, but oil prices have stalled below their 3-month average, which typically supports the CAD. On the other hand, Chile's robust copper price, now exceeding $5 per pound, bolsters the CLP as it enhances export revenues.
The CAD to CLP is expected to trade within a stable range, and it may drift lower as the loonie struggles against favorable conditions for the peso. An upside risk could arise from a surge in oil prices, benefiting the CAD. Conversely, a geopolitical shift or economic disruption in Chile could negatively impact the CLP, potentially weakening its gains against the CAD.