USD/CLP market view

The exchange rate of dollar (USD) to Chilean peso (CLP) increased steeply in recent days, as a consequence of the strong dollar. The Chilean peso has strengthened in recent months due to US CPI data as well as political conflicts occurring in Peru, which has affected the performance of important mining companies for the neighboring country, which has caused the inventory , which is quite low globally, has been further reduced. Chile continues to be by far the main copper exporter on the planet, but the situation in Peru has caused the price of the red metal to rise in recent times and recover the level of $4 usd.

Looking ahead, we forecast US Dollar Chilean Peso to be priced at 822.782 by the end of this quarter and at 909.826 in one year, according to Trading Economics global macro models projections and analysts expectations.

ANALYST VIEW

From the observation, we can hopefully said that we are seeing that the instrument could go for this week looking for resistance due to the behavior that the currency had yesterday and that made it give a small upward push after falling to levels of $788 and ending the day at $794. For now, we see that the instrument could look for the resistance of $800 pesos and if it breaks this level, go for $807 pesos. As stronger resistance we see the $813 levels. For now, we see the important supports in the area of $786 and if we break that area we would see more downward pressure in search of the levels of $775.

Technical note: Caution as soon as today's CPI data comes out as it will generate high volatility.