USD/PHP Comfortably Above 57.00, Fresh Highs Back To Late 2022

USD/PHP spot has broken above 57.00 in the first part of Wednesday trade. The pair was last around 57.21, fresh highs back to Nov 2022, -0.40% weaker in PHP terms for the session, (earlier highs were at 57.266). We are comfortably above 2023 resistance levels around 57.00. The 1 month NDF was last near 57.25, after breaking above the 57.00 level yesterday.

• The move higher reflects continued broad USD gains, albeit with the BBDXY slightly off recent highs in recent dealings. For spot USD/PHP the 20-day EMA is back near 56.44. Topside focus is likely to rest on 57.55, the Nov 16 2022 high.
• BSP Governor Remolona stated yesterday that the 57.00 level was not a strong resistance point as far as the authorities were concerned. He also added that tensions in the South China Sea were another source of PHP pressure.
• The Governor also cautioned against rate cut expectations, with inflation at risk of being above the target for the third year (BBG).
• Local equities are up in early trade, but still sub the simple 200-day MA and around 7.3% off earlier April highs. Like elsewhere in the region, we continue to see offshore investors selling local equities (-$20.8mn yesterday).