- The USD/CLP is trading higher, gaining 0.10% on the day.
- Copper has ended an eight-session losing streak, rebounding 0.76% today.
- Chilean Finance Minister Mario Marcel reaches agreement with Senate to present fiscal pact.
The USD/CLP set an intraday high at 956.02, attracting sellers who pushed the pair to a session low of 948.77. Currently, the US dollar is trading at 952.38 against the Chilean Peso.
Copper price rebounds and ends eight-day losing streak
Weak demand for the metal from China due to the housing crisis it is facing has pushed copper prices to near four-month lows. The Chinese government has not announced any additional measures to stimulate the property market. The People’s Bank of China’s cut in interest rates to 3.35% from 3.45% has been insufficient to stimulate the economy in the short term. Copper is up 1.29%, trading at $4.11 today, ending an eight-day losing streak.
On the other hand, Chilean Finance Minister Mario Marcel reached an agreement with the Senate to present the “Fiscal Pact”, which contemplates an additional collection of 1.5% of the Gross Domestic Product. The next step is the discussion in the Chamber of the Upper House, next week.
Technical levels in the USD/CLP
The USD/CLP has been consolidating over the past five sessions, establishing short-term resistance at 956.24 and first support at 942.51, the low of July 19. The next support is found at 905.80, in convergence with the 78.6% Fibonacci retracement and pivot point of July 11.
Chilean Peso Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
