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Peso Holds Onto Losses, Medalla Says Low CPI Could Justify BSP Pause

PHP

USD/PHP 1-month NDF last seen +0.21 at PHP56.18 with participants digesting comments from local central bank chief. The 200-DMA (PHP56.17) has been pierced and bullish focus turns to Apr 19 high of PHP56.55. Bears see May 4 low of PHP55.17 as their key near-term target.

  • Bloomberg runs comments from Bangko Sentral ng Pilipinas Governor Felipe Medalla, who says that the central bank "clearly must pause" if low CPI in the last three months is a permanent trend. However, if the Fed will not be cutting interest rates, it would be hard for the BSP to cut its key rate.

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