Peso Softens On Higher Oil, But Remains Within Recent Ranges, CPI On Tap Tomorrow

USD/PHP has spiked back above 56.00, last in the 56.05/10region, around 0.35% above closing levels from the end of last week. The simple 200-day MA is nearby at 56.12, but we have seen stronger selling resistance on moves into the 56.30/56.40 region in recent months. On the downside, late May lows come in under 55.70, while the 50-day MA is back at 55.44.

• Higher oil prices are likely weighing at the margin, given the Philippines already less than favorable external trade dynamics. Still, prices for Brent crude are down on earlier session highs (last around $77/bbl), which has likely tempered bearish sentiment to a degree.
• Onshore equities are also tracking higher at this stage, last above 6530, which is comfortably above recent lows closer to 6400.
• Tomorrow, the focus rests on May CPI. The market expects headline momentum to ease to 6.1% y/y from 6.6% prior.