01.15.2022

The CHILEAN PESO (CLP) – A DOUBLE-TOP formation could lead to a 10% move lower.

The BRAZILIAN REAL (BRL) – A major CYCLE COUNT has an A-B-C conclusion that could strengthen the BRL 10+% over the next several quarters.

We may be in an environment where inflationary pressures force EM central banks to hike rates, in addition, those same pressures could strengthen commodity prices. That is a powerful combination for CLP and BRL as the CARRY TRADE could re enter the spectrum for ASSET MANAGERS and RESERVE MANAGERS.

More to come on this.