Trial now

(Z1) Bearish Trend Condition


(Z1) Bearish Price Sequence


(Z1) Off Recent Highs


(Z1)‌‌ Support Appears Exposed

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

Spot USD/PHP last changes hands at PHP50.321, virtually unchanged on the day, with domestic focus falling on the latest comments from BSP Gov Diokno. Bears look for a retreat under Jul 23 low of PHP50.085 towards Jul 13 low of PHP49.940, while bulls need a clearance of Jul 19 high of PHP50.496 before targeting May 28/22, 2020 highs of PHP50.770/50.795.

  • USD/PHP 1-month NDF last seen +0.120 at PHP50.430, with bulls looking for a jump above Jul 27 high of PHP50.730, before taking aim at Jul 19 high of PHP51.390. Bears keep an eye on Jul 22/13 lows of PHP50.140/50.100.
  • BSP Gov Diokno reiterated that Bangko Sentral is committed to a flexible FX policy, as a market-driven exchange rate can serve as a buffer against external shocks. Diokno said that the peso's depreciation is in line with regional dynamics, while the currency will draw support from foreign remittances and outsourcing revenue.
  • Fitch said that household spending in the Philippines is expected to grow 5.1% in 2022, after rising 4.0% this year. They noted that "a full recovery of Philippines' consumer and retail sector will only take place in 2022, with conventional growth returning in 2023."
  • Philippine bank lending data may hit the wires over the coming days, but there is no fixed time of the release. Next week's highlights include unemployment (Tuesday), CPI (Thursday) & trade balance (Friday).
  • Ahead of the release of inflation data next week, BSP's Diokno said that the central bank expects headline CPI to settle within the +3.9%-4.7% Y/Y range this month, while the point inflation forecast is +4.3% Y/Y. Bangko Sentral see higher prices of petroleum products and key food items as key sources of upward price pressure.
  • Meanwhile, Philippine PPI fell 2.5% Y/Y in June, according to the latest update from the Philippine Statistics Authority, after a revised 4.1% decline recorded in May.

Fig. 1. Philippine PPI For Total Manufacturing