USD/PHP Holding Between 56.50/57.00, Peso Doesn't Benefit From Weaker USD Index

USD/PHP is tracking slightly higher in the first part of trade today. The pair near 56.78. This is a little over 0.15% weaker in PHP terms versus yesterday's close, but it keeps us firmly within ranges seen in September so far, roughly 56.50/57.00.

• Yesterday's USD weakness hasn't flowed through into the peso to any great extent, with USD/PHP modestly above levels from the end of last week.
• The focus remains on resistance at 57.00, which remains a potential intervention point by the authorities.
• The local data calendar is quiet until Friday, when July remittances are due, along with the August BoP. Non-resident investments were $484mn in June, down -20.4% compared to the first 6 months of 2022.
• Locally, the authorities may remove the ceiling on rice prices in two weeks post the local harvest.
• The BSP also has mopped up slightly more liquidity vias its overnight RRP facility yesterday (see this link).
• Local equities are attempting to move above 6250, while offshore investors are still net sellers of local equities.