Trade: Short USDCLP – Entry: 950; target: 920, stop 965
Trade rationale: With Chile accounting for 70% of refined copper shipped to the US, it is possible the country could negotiate an exemption from copper tariffs. This would provide a boost to the CLP, which should also benefit from lower oil prices. Chile still has the lowest effective tariff rate among LatAm peers. In addition, some risk premium has been embedded after the recent post-primary election momentum polled in favour of an unorthodox policy party. However, it is also possible we could see a slowdown in momentum in the near term, as safety and security are still key issues for voters, which would tend to favour the more conservative policy camps.