Free Trial

Peso Keeps Lagging Behind, BSP Rate Review Eyed Next Week

PHP

Spot USD/PHP trades +0.155 at PHP55.465, with the peso pacing losses in emerging Asia. From a technical standpoint, gains past Jul 28 high of PHP55.975 would shift focus to historic highs of PHP56.500. Bears look for a dip through the 50-DMA at PHP55.059.

  • USD/PHP 1-month NDF last +0.100 at PHP55.560. Topside focus falls on Jul 28 high of PHP56.060, followed by all-time highs of PHP56.740. Bears look for a retreat under PHP55.192, which represents the 50-DMA.
  • Global funds turned into net buyers of Philippine stocks on Thursday for the first day in five, buying a net $17.2mn in local equities. That said, yesterday's rally in the PSEi has ran out of steam, with the index down 0.2% on the day as we type.
  • Philippine overseas remittances are expected to cross the wires in the coming days.
  • Bangko Sentral ng Pilipinas will announce its monetary policy decision next Thursday. Policymakers are hesitating between a 25bp and a 50bp rate rise. As things stand, there are two analysts expecting each scenario in a Bloomberg survey, with one calling for a 25bp cut (this may be an error as the said economist tweeted that he expects BSP to "surprise with a hold").

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.