CLP: Downside Risks Creeping Up

After having traded around trendline support at CLP538.00/US$ during August and September, the Chilean peso has bounced significantly, breaching our short-term resistance target of CLP525.00/US$. The recent strength is largely due to strong performance of the export sector which has been led by high copper prices. That said, despite resilient global demand, which should continue to bolster Chilean exports, the carry trade of the peso is relatively unattractive. Should the US

To read the full article, please choose one of the following options: