GBP/CLP Outlook: Slightly weaker, but likely to move sideways, as the rate is below its recent average and lacks strong drivers for a clear direction.
Key drivers:
- The Bank of England's cautious stance on rate cuts implies limited upside potential for the GBP, particularly amid low growth forecasts.
- Chile's recent interest rate cut reflects a strengthening peso, supported by declining inflation and political stability following the recent election.
- Rising copper prices are boosting Chile's export revenues, contributing to the peso's continued appreciation.
Range: The GBP to CLP rate is expected to hold within its recent trading range as it searches for direction, given the lack of distinct drivers affecting movement.
What could change it:
- A surprising shift in monetary policy from the Bank of England could bolster the GBP.
- A sudden decline in copper prices or adverse political developments in Chile could weaken the peso and support the GBP.