USD/PHP Back Near Late February Highs

USD/PHP sits just above 55.50 currently, close to late February highs above 55.60. The pair is back above all key EMAs, with the simple 200-day MA sitting higher around 56.08. Note USD/PHP hasn't been above the 56.00 level since early January. The peso is 0.50% weaker for the session, in line with broader USD gains. Still, the currency is comfortably the worst performer in EM Asia FX month to date (down just over 2%, with the won the next worst at -0.80%).

• Comments from BSP Governor Medalla yesterday were notable. The Governor stated that the central bank may pause in May if April CPI falls below 0.3% m/m. This would be the third straight month of a sub 0.3% outcome Medalla stated. Note this data prints on May the 5th.
• This may be weighing on PHP sentiment at the margins, particularly given the renewed up tick in US yields through the tail end of last week. More elevated oil prices are likely an additional headwind, given continued trade deficit prints.
• Earlier on the data front, February remittances came in slightly below expectations (2.4% y/y, versus 3.9% forecast). The data calendar is quiet for the rest of the week, although we may get March BoP figures.