Macroeconomic Forecast Chile

June 2007 | Macroeconomic Forecasts

The Chilean peso has weakened slightly since reaching a 12-month high around the CLP516.00/US$ level in late May, and is now trading at CLP528.15/US$. the unit is poised to test key support at CLP530.00/US$ (see chart), a break of which could presage further losses to CLP535.00/US$. That said, the short-term trajectory of the peso will likely be determined by the movement in the price of copper, which is currently trading at US$3.25/lbs. While strong global economic activity is likely to remain supportive of copper in the short-to-medium term, from a technical perspective, copper is looking slightly weak, and could see

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