CLP: A Convincing Case For Medium-Term Strength

With the government announcing additional US dollar sales to the tune of US$40mn a day, the Chilean peso has flown to a nine-month high of CLP533.75/US$, taking out key resistance at CLP547.00/US$ along the way. While we see scope for further short-term gains towards CLP510.00/US$, we believe that further appreciation will be capped as the market price in the daily interventions, especially with financial market volatility showing signs of a possible comeback.

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