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Peso Garners Strength, PPI Inflation Quickens

PHP

Spot USD/PHP trades -0.037 at PHP56.188 as the peso outperforms reginal peers. On the downside, technical focus falls on the 50-DMA, which kicks in at PHP55.666. Conversely, bulls look for a rally towards the PHP56.500 record high.

  • USD/PHP 1-month NDF last -0.040 at PHP56.290. Bears look to a dip through the 50-DMA at PHP55.860. Bulls keep an eye on the all-time high of PHP56.740.
  • The PSEi trades on a slightly softer footing today, despite managing to close its opening gap on Tuesday. Foreign investors sold a net $0.66mn in local equities yesterday.
  • Factory-gate price growth kept accelerating in July. The latest data from the local statistics authority showed that PPI inflation quickened to +7.9% Y/Y from +7.5% prior.
  • Philippine bank lending data should cross the wires at some point today.

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