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Peso Tad Firmer Amid Debate On Marcos' Political Agenda

PHP

Spot USD/PHP continues to trade on a softer footing, moving away from the PHP52.500 key resistance level. The rate last deals -0.055 at PHP52.325, with bears setting their sights on the 50-DMA, which intersects at PHP52.072. Bulls keep an eye on the aforementioned PHP52.500 figure.

  • USD/PHP 1-month NDF last seen -0.030 at PHP52.640. Bears look for a slide through the 50-DMA at PHP52.364, while bulls look to a jump above May 9 high of PHP53.250.
  • With Ferdinand Marcos virtually certain to succeed Rodrigo Duterte as the Philippine President, analysts are trying to reconstruct his tentative agenda. Marcos is expected to continue the "Build, Build, Build" infrastructure programme, but there is less clarity on foreign policy front.
  • Reminder that quarterly GDP data are due out of the Philippines on Thursday. The economy is expected to have expanded 6.8% Y/Y in Q1, according to Bloomberg consensus forecast, after a 7.8% growth in the final three months of 2021.

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