USD/CLP Outlook:
Bearish, as the rate is below its recent average and near recent lows.
Key drivers:
• Rate gap: The U.S. Federal Reserve's decision to hold interest rates steady contrasts with Chile’s lower rates aimed at fostering growth, favoring the CLP.
• Risk/commodities: Ongoing global trade tensions, including U.S. tariffs on other nations, have heightened market volatility, impacting both currencies.
• One macro factor: Chile's economy grew in 2025, largely driven by strong mining exports, which supports the peso's strength against the dollar.
Range:
Expect USD/CLP to hold its current position, with potential to test recent lows amid ongoing pressures.
What could change it:
• Upside risk: A significant improvement in U.S. economic data could boost the dollar's appeal.
• Downside risk: Continued geopolitical tensions and tariff threats could further weaken the dollar against the peso.
