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Peso Under Pressure, Lodges New Cycle Lows

PHP

Spot USD/PHP extends gains after breaking key resistance from PHP52.500 towards the back end of last week. The rate last deals +0.059 at PHP52.925, hitting its best levels since Mar 2019. From a technical point of view, a break above Mar 20, 2019/Jan 22, 2019 highs of PHP52.960/53.040 would shift focus to Dec 20, 2018 high of PHP53.250. Bears look for a pullback under PHP52.500.

  • USD/PHP 1-month NDF last +0.080 at PHP53.170. Topside focus falls on May 9 high of PHP53.250, while bears keep an eye on May 30 low of PHP52.230.
  • The Philippines' outgoing central bank governor/incoming Finance Secretary Diokno told ABS-CBN that the nation can achieve an "A" credit rating by the end of President Marcos' term. He noted that economic planners are unlikely to limit spending, but revenues are expected to increase.
  • Looking ahead, the Philippine Statistics Authority will publish CPI data on Tuesday, with trade report and unemployment coming up on Thursday and Friday respectively.

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