USD/CLP Outlook:
The USD/CLP is likely to decrease as the exchange rate is currently 3.9% below its recent average and near 14-day lows.
Key drivers:
- Rate gap: The U.S. Federal Reserve's stances on interest rates remain higher compared to the stable approach of the Central Bank of Chile, placing pressure on the peso.
- Risk/commodities: Ongoing challenges in the mining sector, especially concerning copper production, are weakening the peso.
- One macro factor: Recent inflation data that dramatically exceeded expectations has raised concerns about future economic stability in Chile.
Range:
Expect the USD/CLP to drift within the recent volatile range, with potential for minor fluctuations.
What could change it:
- Upside risk: A stronger-than-anticipated recovery in copper prices could bolster the CLP.
- Downside risk: A rise in U.S. jobless claims that negatively impacts the USD may not sufficiently counteract the peso's ongoing weakness.
