(Bloomberg)– Chilean CLP sees the largest fall in fundamentals during the last eight weeks, suggesting that sharp gains of the past three weeks may be overdone.
Long-term bullish/ bearish biases of currencies.
+ MYR (Malaysia) overall bias remains bullish.
+EUR (Euro), SEK (Krona), GBP (Pound), and JPY (Yen) overall biases remain bearish.
+ Last week saw Chile release a second-consecutive negative y/y industrial production print as well as the highest unemployment rate since 2011.
- Chile’s terms of trade have slumped in recent months.
- CLP implied volatility is remaining elevated, after climbing from April to September, discouraging investment and leaving the currency vulnerable to s sharp correction.
- Chile has a widening current-account deficit which will become more of a negative as global yields climb.
– Circa Mr. Mark Cudmore, Bloomberg Macro Strategist
-R.W.N II, yours in 322
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