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PHP: USD/PHP Firmer But In Overbought Territory, BSP Gov Sees Risks of 59.00

PHP

USD/PHP has ticked up modestly in the first part of Monday dealings, the pair last near 58.40, a little over 0.10% weaker. This is fresh highs in the pair back to early August. Late July highs in the pair came in at 58.69. The pair is in overbought territory based off the RSI (14), but the key EMAs rest back near 57.00 to 57.34. Prior to that we have recent highs around 57.90, which could act as a support point on any pullback in the pair. 

  • The pair appears to be following broader USD/yield momentum higher. Comments from BSP Governor Remolona on Friday pointed to risks the peso weakens to the 59.00 level over time, given the USD's safe haven appeal and upcoming election.
  • He added that the central bank has not been intervening in FX markets and that the rate of pass through from PHP weakness to domestic inflation is the main focus point. It also isn't expected to impact the easing cycle. (per BBG). PHP is weaker 4% so far in Oct against the USD.
  • On the data front, we have bank lending data on Thursday. Next week delivers Oct CPI figures on Tuesday. 
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USD/PHP has ticked up modestly in the first part of Monday dealings, the pair last near 58.40, a little over 0.10% weaker. This is fresh highs in the pair back to early August. Late July highs in the pair came in at 58.69. The pair is in overbought territory based off the RSI (14), but the key EMAs rest back near 57.00 to 57.34. Prior to that we have recent highs around 57.90, which could act as a support point on any pullback in the pair. 

  • The pair appears to be following broader USD/yield momentum higher. Comments from BSP Governor Remolona on Friday pointed to risks the peso weakens to the 59.00 level over time, given the USD's safe haven appeal and upcoming election.
  • He added that the central bank has not been intervening in FX markets and that the rate of pass through from PHP weakness to domestic inflation is the main focus point. It also isn't expected to impact the easing cycle. (per BBG). PHP is weaker 4% so far in Oct against the USD.
  • On the data front, we have bank lending data on Thursday. Next week delivers Oct CPI figures on Tuesday.