USD/PHP Edges Back Above 56.00, But Peso Outperforming Most Other Asian FX

Spot USD/PHP sits within Feb ranges, last tracking near 56.06. This leaves this Peso little changed for the session. We are comfortably above recent lows 55.70, but late Jan highs, just above 56.50 are some distance away.

• Key EMAs are all clustered close to spot, 55.90 to 56.02. It's a similar story for simple MAs as well.
• More broadly, PHP remains the third best performer in the EM Asia space 2024 to date, after HKD and INR. The BSP's high policy rate likely aiding the currency relative to others in the region as Fed cut expectations have been pushed out.
• Macro news flow has been light out of the Philippines. The government raises a record $10bn from Retail Treasury bond sales. The funds will be used to fund infrastructure and other government projects.
• Like elsewhere in the region, Philippines equities have moved off recent highs, which has likely provided some USD support. Net equity inflows have been positive this past month.
• On the data front, we get budget balance data on Thursday, the PMI on Fri. The Feb CPI is due on March 5, which will be important to the BSP outlook.