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Peso Struggles Ahead Of Possible Off-Cycle Rate Hike

PHP

USD/PHP 1-month NDF have extended gains after hours, albeit the sideways trend established over the past two months or so remains intact. The NDF trade +0.07 at 56.81, with bulls eyeing resistance from Sep 26 high of 57.25 and Aug 16 high of 57.56. Spot USD/PHP closed +0.09 at 56.86.

  • Reminder that BSP Governor Remolona signalled that a pre-emptive, off-cycle rate hike is on the table and could be delivered as soon as on Thursday (i.e. tonight). The official made the comment while en route to a meeting to evaluate data, which was supposed to inform further decisions.

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