Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
PHP
USD/PHP is down a touch in the first part of trade today. Earlier we touched below 56.10, but we sit slightly higher now, last in the 56.10/15 region. Spot markets were closed yesterday, while positive momentum for PHP from late on Friday still seems evident at this stage (PHP gained 107% for Friday's session). The pair isn't too far away from the 20-day EMA near 55.96. Earlier August highs rest at 57.00.
- This week's data calendar is light with just the July budget balance on tap this Friday.
- The BSP expects economic growth this year to miss the government's target. The central bank noted that broader headwinds and the cumulative effects of previous monetary policy tightening could see growth below the 6-7% target for 2023 and 6.5-8.0% target for 2024 (see this link for more details).
- Finance Secretary Diokno stated the government can revise down the 2023 GDP target if needed.
- The PHP rebound is at odds with the firmer US yield backdrop, particularly in terms of real yields (see the chart below). BSP Governor Remolona's description of last week's decision being a hawkish pause has likely aided PHP sentiment at the margins.
- HSBC also notes that the 57.00 level may be a firm intervention point to protect PHP from further depreciation pressures.
Fig 1: USD/PHP Versus US Real 10-yr Yield
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok