15 Jul 2015
Chilean peso expected to range bound – Goldman Sachs
FXStreet (Edinburgh) - In the opinion of analysts at Goldman Sachs, the outlook for the peso remains in the neutral camp for the time being.
Key Quotes
“The Peso has been under pressure over the past several weeks, undermined by the fading momentum of the domestic economy, renewed Dollar strength and the visible decline in copper prices”.
“Nevertheless, the sizeable increase in the trade surplus and the resulting rebound in the country’s external accounts over the past several quarters should provide an important anchor to the CLP going forward”.
“In addition, the negative outlook for oil prices may help to partly offset near-term downside risks to copper prices as Chile is a net energy importer”.
“Hence, we expect the CLP to trade range bound, provided markets price in the approaching ’liftoff’ of the US Fed Funds Rate”.
“We have revised our 3-, 6- and 12-month forecasts for $/CLP to 640 flat from $/CLP at 630 flat”.
Key Quotes
“The Peso has been under pressure over the past several weeks, undermined by the fading momentum of the domestic economy, renewed Dollar strength and the visible decline in copper prices”.
“Nevertheless, the sizeable increase in the trade surplus and the resulting rebound in the country’s external accounts over the past several quarters should provide an important anchor to the CLP going forward”.
“In addition, the negative outlook for oil prices may help to partly offset near-term downside risks to copper prices as Chile is a net energy importer”.
“Hence, we expect the CLP to trade range bound, provided markets price in the approaching ’liftoff’ of the US Fed Funds Rate”.
“We have revised our 3-, 6- and 12-month forecasts for $/CLP to 640 flat from $/CLP at 630 flat”.