USD/CLP extended through our main MA target zone at
663.25/40 a bit sooner than expected and managed to test the 200-day MA at
668.43 amid the week’s very strong move upside.
The 2.9% increase in
Q3 GDP was a little above published consensus forecasts but probably close to
where expectations had moved after the surprise fall in Sep's trade deficit.
The broad message of the data was in line with what we had expected, the 2.9%
rise in GDP and the 1.4% rise in final sales to domestic buyers are both 0.1%
below our calls.
In September 2015 Barclays and Roubini Global
Economics (now 4CAST-RGE) collaborated to launch the Roubini Barclays Country
Insights™ Indices, a family of tradable equity indices that aim to pick
fundamentally strong countries. One year later four of the indices
have outperformed their market benchmarks, with the fifth coming in par.
The mkt was able to plunge to/below our 100-day MA
target on 18 Oct and closed below. The low so far for the current move is
around 18.45 as the 200-day MA nears.
4Cast RGE Research Director Andy Hartwill discusses the British pound, U.K. equities and Brexit. He speaks on " Bloomberg Markets: European Close."
Pound rallies on May’s promise of Brexit debate
“[Sterling-dollar] has been a falling knife for weeks now, and although we would be wary of calling for a bottom, the huge rebound would have given medium-term shorts pause for thought,” said analysts at 4Cast-RGE.