The GBP to CLP exchange rate shows a bearish market bias currently.
Key drivers include the Bank of England's anticipated interest rate cuts as inflation eases, potentially lowering rates to 3.25% by mid-2026. In contrast, Chile’s Central Bank recently cut its interest rate to 4.5%, influenced by rising copper prices, which support economic growth. Additionally, concern over the UK's fiscal policy and slowing growth is weighing on the GBP.
The near-term trading range for GBP to CLP may remain between recent lows around 1200 and previous highs near 1287.
Upside risks include unexpectedly strong UK economic data that could lead to slower-than-expected rate cuts. Conversely, a significant drop in copper prices could negatively impact the CLP, as it is a key driver of Chile's export revenue.