13 May 2015
Chile expects tighter monetary conditions in Q4 – Scotiabank
FXStreet (Edinburgh) - Eduardo Suarez, Chief FX Strategist at Scotiabank, sees the Chilean central bank to hike rates towards Q4 2015.
Key Quotes
“The Chilean peso was a “mid-tier” performer among the LATAM FX in the month of April, with the peso gaining +1.0% on the greenback”.
“Behind the peso’s stabilization lie more stable copper prices (90d correlation of -44%), and broad USD weakness (DXY correlation of -47%)”.
“A risk to monitor is how recent soft data (retail sales + 0.4% and manufacturing output 2.8% in March) affect the BCCh’s stance, as a dovish shift could hurt the CLP”.
“For the time being, the latest sign we have from Governor Vergara is that a lift-off is likely in Q4”.
Key Quotes
“The Chilean peso was a “mid-tier” performer among the LATAM FX in the month of April, with the peso gaining +1.0% on the greenback”.
“Behind the peso’s stabilization lie more stable copper prices (90d correlation of -44%), and broad USD weakness (DXY correlation of -47%)”.
“A risk to monitor is how recent soft data (retail sales + 0.4% and manufacturing output 2.8% in March) affect the BCCh’s stance, as a dovish shift could hurt the CLP”.
“For the time being, the latest sign we have from Governor Vergara is that a lift-off is likely in Q4”.