The current market bias for the USD to CLP exchange rate is bearish.
Key drivers influencing this trend include the anticipated interest rate cuts by the Federal Reserve, which are expected to weaken the USD as it looks to ease monetary policy in response to lower inflation. Additionally, the Chilean Central Bank's recent rate cut and the surge in copper prices, which benefits Chile's economy as the largest copper producer, provide support for the CLP. Observing the broader economic context, Chile is projected to experience steady growth, further strengthening its currency.
In the near term, the exchange rate may trade within a range that reflects recent stability, potentially reflecting some fluctuations due to these key developments. Upside risks to this forecast include unexpected economic growth in the U.S. that could strengthen the USD, while the downside risks involve any significant decline in global commodity prices that could adversely impact the CLP.