Economy / Chile
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CLP: External Sector Is Key
May 2007 | Currency ForecastSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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The Chilean peso has been on an appreciatory trend in recent weeks. The unit recently broke through 11-month trendline resistance at CLP532/US$ and is currently trading at CLP526/US$, marking a four-month high. The recent strength of the unit is largely the result of the bounce in commodity markets, particularly the price of copper - Chile's most important export. While we see potential for further gains ahead, the CLP522/US$ level will act as major resistance, a break of which could presage gains towards CLP510/US$. The resurgence in economic activity registered in recent months, combined with a strong external sector will