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USD/PHP Back To Mid-Point Of Recent Range, BSP Governor Still Sounds Hawkish

PHP

USD/PHP sits back at 56.74, around 0.22% firmer in PHP terms versus yesterday's close. Like for some other parts of the region, the pair is testing downside support at the 20-day EMA. Still, for USD/PHP we remain well within recent ranges. Lows this month have been marked near 56.50, while resistance at 57.00 remains in place on the topside.

  • BSP Governor Remolona has spoken today, stating that while corporate loans are elevated the overall banking system remains in strong sharp (see this BBG link).
  • The Governor also stated the central bank can't say that they are done with monetary tightening, while a 25bps hike won't be ruled out (as upside risks to inflation have materalized).
  • Presumably the likelihood of an intra-meeting move from the BSP has fallen somewhat in light of reduced Fed tightening odds at the November policy meeting. The next BSP meeting is on the 16th of November (coming after the Nov 1 Fed meeting).
  • The local Philippines data calendar is empty until next week when remittances data for August prints.

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