Spot USD/PHP changes hands +0.157 at PHP56.000 as the peso underperforms in emerging Asia ahead of Thursday's BSP monetary policy review. Bulls look for a rally towards historic highs of PHP56.500. Bears look for a retreat under the 50-DMA, which intersects at PHP55.183.
- USD/PHP 1-month NDF trades +0.030 at PHP56.120. Bulls see the all-time high of PHP56.740 as their initial target, while bears look for a dip through the 50-DMA at PHP55.316.
- Philippine overseas cash remittances rose 4.4% Y/Y in June, beating the consensus forecast of +3.5%.
- The PSEi rose for a sixth consecutive day on Monday, its longest winning streak in 9 months. It is on track to extend this bullish run as the index has climbed today, approaching the 50% retracement of the Feb - Jun sell-off. Global funds were net buyers of Philippine stocks on Monday.
- Most analysts expect Bangko Sentral ng Pilipinas to raise the key policy rate by 50bp this week as the Monetary Board is set to decide between the expected outcome and a more modest 25bp hike.
- A Bloomberg survey of economists showed that the BSP is expected to raise its main interest rate by a cumulative 75bp bringing it to 4.0% by the quarter-end before hitting pause in Q4.