Convert 1 CLP to CAD

The Chilean Peso to Canadian Dollar exchange rate is influenced by Central Bank rates, copper prices, inflation data, and Chinese demand, as well as Bank of Canada rate decisions, oil prices, employment data, and US economic performance. Both the Central Bank of Chile and Bank of Canada play crucial roles in determining the relative strength of these currencies.

Chile is basically the copper capital of the world and the peso reflects that completely. If youre trading the CLP youre essentially trading copper with extra steps because the correlation is proper strong. Chile produces about a quarter of the worlds copper supply so when copper prices are flying the peso tends to do well and when they tank it gets ugly. Chinese demand is the big driver here since China hoovers up most of the worlds copper for construction and manufacturing. The USDCLP pair is the one youll be looking at and its not the most liquid thing in the world.. spreads can be chunky especially outside of Latin American trading hours. The Central Bank of Chile runs a free floating regime and theyve been fairly orthodox with monetary policy compared to some of their neighbours which is refreshing. Political risk is something to watch though because Chile has gone through some significant political shifts in recent years and the peso has reacted to that. Not a currency most retail traders bother with but if youre into EM plays and you have a view on copper its worth having on your radar.

Everyone calls it the Loonie after that bird on the one dollar coin and honestly its a proper fitting name because this currency can send you a bit loony trying to trade it sometimes. Canada is basically Americas neighbour with oil and thats kind of all you need to know.. crude prices are a massive driver especially WTI since thats whats relevant for Canadian exports. The USDCAD pair is one of the most traded in the world and it moves in a funny way because youre essentially trading oil sentiment against US dollar strength at the same time. When oil rips higher the CAD strengthens and USDCAD drops but if the USD is rallying hard it can override that completely. The Bank of Canada tends to shadow the Fed to some degree because the two economies are so intertwined.. about three quarters of Canadian exports go to the States so whatever happens south of the border matters enormously. The CADJPY cross is another good one to watch as it combines the commodity and carry trade angles. Solid G10 currency with decent liquidity around the clock.