Peso Rallies Along Regional Peers, President Marcos Flags Inflation Concerns

Spot USD/PHP operates at PHP57.160, down over 1 figure on the day, in line with the broader rally in Asia EM FX after the release of U.S. consumer inflation data, with latest adjustments to China's COVID-19 rules further boosting sentiment. Bears now look for a dip through the 100-DMA at PHP56.882 after the 50-DMA gave way, while bulls eye the PHP59 figure for resistance.

• USD/PHP 1-month NDF last -0.12 at PHP57.16, testing its 100-DMA at PHP57.15. A breach of that moving average would bring Sep 13 low of PHP56.70 into play. Bulls need a rebound above Nov 3 high of PHP59.05 to get some reprieve.
• Foreign investors were net buyers of $6.90mn in Philippine stocks Thursday. The PSEi faltered before a strong rebound today, as the impact of U.S. CPI data kicked in.
• Pres Marcos expressed concern over elevated inflation, noting that his administration has deployed "intervention and non-intervention" countermeasures, another confirmation of the issue's political significant.
• Bangko Sentral ng Pilipinas will announce its monetary policy decision next Thursday. Most analysts expect the central bank to make good on its promise to match the Fed's latest 75bp rate hike.