GBP/CLP Outlook:
Bearish, as the rate is below its recent average and near recent lows, reflecting mixed economic signals.
Key drivers:
• Rate gap: The Bank of England's cautious policy contrasts with Chile's steady interest rates, narrowing the rate differential.
• Risk/commodities: Oil prices remain volatile yet slightly above average, which can influence demand for the Chilean Peso due to its oil export profile.
• One macro factor: Chile's economy expanded significantly in 2025, easing some pressure on the Peso but political uncertainties persist, complicating the outlook.
Range:
GBP/CLP is likely to hold within its recent 3-month trading range but could drift lower given current pressures.
What could change it:
• Upside risk: A positive shift in UK economic data could bolster GBP.
• Downside risk: Escalation in Chile's political uncertainties might further weaken the Chilean Peso.