The Canadian Dollar is trading against the Chilean Peso at 577.83 this morning, up 0.94% with a YTD change of 3.56%. The pair’s open rate was 572.63, up slightly from the previous close of 572.61. CAD/CLP should have a day range between 569 and 580, the 52-week range is forecasted to move between 546 and 623.
CAD/CLP has gained bullish strength throughout January, jumping from an exchange rate of 550 at the beginning of the month, to the 570-580 level as this week begins. If the Canadian economy continues the recovery of employment and housing markets in the coming weeks, there are hopes that the pair will make it back to an exchange rate above the 600 range which was last seen in mid-October.
Over the last year, CAD/CLP has been rising to the 600 level and then falling to the 570 level or lower, this bullish pattern is anticipated to continue as CAD/CLP recovers from the lowest exchange rate seen since October 2019 at the 550 level.
Chile’s peso is anticipated to continue falling due to the recent pressure from low copper prices which is the country’s main export. Business Recorder reported that there have been ongoing “demand worries as top consumer China imposed new curbs due to the spread of the coronavirus.”
After months of anti-government protests at the end of 2019, the pandemic has created “fertile ground for populist in Chile, and a divided political system may make fiscal consolidation more difficult to achieve” moving into February.
By Surina Nath