A new president with old ties to Colombia's guerrilla has been elected to power. His political views seem aligned with Venezuela's. Smart capital will look to exit the COP given the expected devaluation and complete depletion of reserves with possible failed socialists policies in the horizon. I expect the USDCOP to reach 5000 by EOY.
On the back of divergent central bank policies, continued weakness in the JPY and the AUD being sold off after a substantial rate hike, I believe there is more upside to the pair. Any dips will be a good opportunity to build a long position.
