MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

MNI: BANK OF KOREA KEEPS POLICY RATE AT 3.50%: PRESS

Japan May Machine Orders -3.2% M/M

MNI JAPAN MAY CORE MACHINE ORDERS -3.2% M/M; APRIL -2.9%

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD/PHP Moves Off Recent Highs, Bucking Firmer USD Levels

PHP
BulletEM BulletEmerging Market NewsHomepage

USD/PHP is lower, last near 57.50/55, around 0.25% stronger in PHP terms. The peso is bucking the broader stronger dollar trend (BBDXY +0.20%) so far today. The pair has progressively moved away from recent highs near 58.00.

  • Recall last week we had comments from the BSP Governor that they were prepared to intervene in FX markets. This hinted that the 58.00 level was a potential short term line in the sand. This has potentially curbed further upside interest in the pair. Note we still sit away from support points, with the 20-day EMA back around the 57.13 level. The IMF noted in commentary today the local currency could face pressure from interest rate differentials.
  • Still, cross asset sentiment is better, with Philippine equities recovering strongly in recent weeks. Some stability in energy prices and US real yields is also likely helping at the margin.
  • The local data calendar is quiet until Thursday when the April PMI is due. Note we get April CPI next Tuesday. BSP expects headline inflation at 3.5-4.3%. Note the consensus is 4.2% y/y (prior 3.7%).
  • The other watch point for markets could be tensions in the South China Sea amid reported clashes between Philippines and China vessels (per BBG).
203 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

USD/PHP is lower, last near 57.50/55, around 0.25% stronger in PHP terms. The peso is bucking the broader stronger dollar trend (BBDXY +0.20%) so far today. The pair has progressively moved away from recent highs near 58.00.

  • Recall last week we had comments from the BSP Governor that they were prepared to intervene in FX markets. This hinted that the 58.00 level was a potential short term line in the sand. This has potentially curbed further upside interest in the pair. Note we still sit away from support points, with the 20-day EMA back around the 57.13 level. The IMF noted in commentary today the local currency could face pressure from interest rate differentials.
  • Still, cross asset sentiment is better, with Philippine equities recovering strongly in recent weeks. Some stability in energy prices and US real yields is also likely helping at the margin.
  • The local data calendar is quiet until Thursday when the April PMI is due. Note we get April CPI next Tuesday. BSP expects headline inflation at 3.5-4.3%. Note the consensus is 4.2% y/y (prior 3.7%).
  • The other watch point for markets could be tensions in the South China Sea amid reported clashes between Philippines and China vessels (per BBG).