USD/PHP Lower, But Unable To Test Earlier Dec Lows

USD/PHP sits above session lows, last at 55.39 (earlier lows were at 55.30). We weren't too far from earlier Dec lows at 55.24. USD/PHP has moved away from earlier Dec highs above 56.00, although is yet to make a concerted break lower.

• PHP has lagged somewhat the softer USD backdrop, although we have seen some catch up in the past week.
• In the cross asset space, Philippine equities sit off recent highs but have participated in the global rebound, PCOMP last near 6474. We see offshore investors selling local equities yesterday (-$32.7mn), which has trimmed month to date inflows back close to flat.
• The rebound in oil prices in recent weeks has also likely constrained PHP demand, although in recent sessions this appears to have been less of a headwind.
• The local data calendar is quiet until later next week when budget balance and money supply figures are due. The BSP will maintain its inflation target at 2-4% through to 2026 (see this BBG link)