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Peso Ticks Away From Cycle Lows, Duterte Announces Retirement From Politics

PHP

Spot USD/PHP ebbed lower in early Asia-Pac trade and last trades -0.050 at PHP50.750, with bears looking for a deeper sell-off past Sep 24 low/50-DMA at PHP50.247/50.244. Bulls see the round figure/Sep 27 high of PHP51.000/51.036 as their initial target. Above there would open up Mar 18, 2020 high of PHP51.823.

  • USD/PHP 1-month NDF last seen -0.010 at PHP50.880. Bears look to a move through the 50-DMA at PHP50.369, bulls would be pleased by a rebound above Sep 27 high of PHP51.520.
  • Local headline flow has been dominated by domestic politics as presidential and vice-presidential hopefuls began filing their candidacies ahead of Friday's deadline. Incumbent President Duterte suddenly announced his intention to retire from politics and not seek vice presidency after his term expires in 2022, taking many analysts off guard.
  • The Philippine Statistics Agency will publish monthly CPI data tomorrow. Bloomberg consensus forecast looks for a pick-up in the pace of consumer-price growth to +5.1% Y/Y from +4.9%.

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