USD/PHP Back to 56.20/25, Jan Inflation Data Out Tomorrow

USD/PHP sits back at 56.20/25 in recent dealings, around 0.55% weaker in spot PHP terms. The 1 month NDF is slightly higher and also weaker in PHP terms versus end Friday levels in NY on Friday (last at 56.27). Broader USD gains and a firmer US yield backdrop have continued today.

• These moves keep us within recent ranges though. Spot lows around 55.92 last week, were just under the simple 200-day MA. Topside resistance could be expected just above 56.50, which has marked recent highs.
• Domestic political developments will remain a focus point, although broader concern in asset markets is not evident. Local shares sit just off recent highs. The National Security Advisor to President Marcos Jr stated the country will use force to quell secession moves (see this BBG link).
• On the data front, the main focus will be tomorrow's inflation print. The market consensus looks for a 0.8% rise in m/m terms, versus 0.2% prior. The y/y pace is expected to ease back to 3.1% from 3.9% though in Dec.
• This would be close to the mid point of the BSP's 2-4% target band.