CLP: Mirroring The Copper Decline

The Chilean peso failed to breach key resistance at CLP523.00/US$ in December, and as we had anticipated has since sold off. The unit broke below 18-month trendline support at CLP531.02/US$ and is now trading around the CLP543.50/US$ level. The recent weakness of the unit is largely the result of the correction in the price of copper - Chile's most important export. We see potential for further losses ahead, and this fact is made even more evident given November's weaker-than-expected growth figure, which may prompt the

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