Chile To Lead LatAm Currency Charge

The Chilean peso broke out of its bearish trend channel on September 16, with a 1.3% gain to close the day at CLP544.70/US$. Last month we argued that the peso's underperformance against Chilean stocks augured well for further gains, and the break of resistance at CLP550.00/US$ means we are now turning bullish the unit. The next key level of resistance lies around the CLP510.00/US$ mark, a break of which would see the currency revert back to its longer-term trading range of CLP460.00-510.00US$.

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