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Peso Stable After Local CPI Report, BSP Gov's Comments

PHP

USD/PHP continues to trade sideways just above the PHP48.00 mark, looking past the latest round of comments from BSP Gov Diokno and local CPI data. The rate last deals +3 pips at PHP48.05.

  • Philippine CPI inflation accelerated to +3.5% Y/Y in Dec from +3.3% seen in Nov, despite expectations of moderating to +3.2%. The 2020 CPI averaged at +2.6% Y/Y.
  • BSP Gov called the inflation uptick "transitory" and pledged that the central bank will keep MonPol accommodative for a long time. He noted that BSP still has some play on the reserve ratio.
  • A move through Dec 22 high of PHP48.13 would shift topside focus to the 50-DMA at PHP48.23. Meanwhile, a fall through the psychological PHP48.00 figure would open up Oct 20 low of PHP47.95.
  • Philippine trade report will be published at some point over the next week.

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