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Above-Forecast Philippine GDP Contraction Fails Generate Demand For USD/PHP

DOLLAR-PHP

Spot USD/PHP still operates near neutral levels, despite a significantly larger than expected economic contraction revealed in the Philippine Q2 GDP report. The data confirmed that the country has entered technical recession. At typing, USD/PHP is virtually unchanged at PHP49.08.

  • A clean break below Aug 5 trough at PHP49.08 would confirm that the broader downtrend remains intact, opening Jun 5, 2017 low of PHP48.94. Bulls look for a recoil above Jul 23 high of PHP49.47.
  • The Development Budget Coordination Committee, which sets official macroeconomic targets and advises to the Cabinet & President, will hold a press briefing at the top of the hour.
  • The Philippines release data on domestic foreign reserves tomorrow.

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