Peso Finds Poise As Price Growth Accelerates

Spot USD/PHP has extended its retreat this morning and last operates -0.060 at PHP51.310, printing worst levels in a month. Bearish focus falls on PHP51.105, which limited losses on Feb 23. Conversely, bulls would find some reprieve in a rebound above Mar 31 high of PHP52.092.

• USD/PHP 1-month NDF last -0.060 at PHP51.440, with bears keeping an eye on the 100-DMA at PHP51.317. Bulls look to a jump above Mar 22 high of PHP52.790.
• Inflation in the Philippines accelerated to +4.0% Y/Y in March from +3.0% recorded in February, topping the median estimate of +3.7% in Bloomberg survey of analysts. Food prices were the main driver of overall price increase.
• BSP Gov Diokno warned that CPI growth could breach the upper end of +2.0%-4.0% Y/Y goal for this year, but should settle within the target range in 2023. He reiterated that supply-side shocks are best addressed by non-monetary measures, but the central bank will remain vigilant for any second-round effects.
• The publication of inflation figures inaugurates this week's series of Philippine data releases, with jobless rate and trade balance coming up Thursday and Friday respectively.