CHILE: Presidential Candidates Hold Closing Events Ahead Of Sunday’s Run-Off
Dec-11 12:17
- The Chilean peso has opened firmer on Thursday amid a pick-up in copper prices and broader softening in the US dollar following the Fed rate decision. The earlier BCCh traders surprise did not present any surprises, with market participants still expecting a 25bp rate cut at next Tuesday’s MPC meeting, followed by a final 25bp move to a terminal rate of 4.25% next year.
- This is unchanged from the previous traders’ survey and consistent with analyst expectations in the equivalent economist survey yesterday. This follows softer-than-expected CPI inflation data over the past two months, which has brought headline and ex-volatiles inflation down to 3.4% y/y, within the 2-4% target range and slightly below the central bank’s expectations.
- The upcoming presidential election run-off on Sunday may also provide some support to the peso, if market favourite Jose Antonio Kast wins, as expected. Today, presidential candidate Jeannette Jara will hold her campaign closing event in Coquimbo, while Kast will hold his in Temuco, both at 2100GMT(1600ET).
- For USDCLP, the trend condition remains bearish, with scope still seen for a move towards 900.00, a psychological level, ahead of 891.28, the Sep 27 2024 low. Key resistance to watch is at 937.57, the 50-day EMA.
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