The current market bias for the GBP to CLP exchange rate is slightly bearish.
Key drivers include the interest rate differential, where the Bank of England (BoE) is expected to slow down rate cuts while the Central Bank of Chile recently reduced rates. This divergence could weigh on the pound. The Chilean peso is gaining support from a significant rise in copper prices, boosting export revenues. Economically, while the UK anticipates slowing growth and inflation can exert downward pressure, Chile’s projected 2% growth supports the CLP.
In the near term, the expected trading range may see the GBP to CLP move in a stable pattern given recent data. Upside risks could stem from a rebound in UK retail sales, boosting the pound. Conversely, the decisive fiscal policies under the new Chilean administration may create uncertainty, affecting the peso's strength.
Current data shows GBP to CLP at 1213, which is below its 3-month average of 1240, indicating some downward pressure in the market's perception.