February 07, 2023 01:58 GMT
USD/PHP Pushes Through 20-Day EMA, January Inflation Surges
USD/PHP is tracking higher today. The pair last around 54.74, +0.60% above closing levels for yesterday. The pair is slightly down from session highs near 54.80. This coincides with earlier Jan highs, with the 55.00 level also approaching. The 20-day EMA, around 54.60 has been breached, which the 50-day EMA sitting higher at 55.33.
- This morning's Jan inflation surprise, +8.7% y/y, versus 7.6% expected, suggests the BSP clearly has more work to do. The forecast range was 5.4-8.0%, while core inflation rose to 7.4% y/y, from 6.9% in Jan.
- The next BSP meeting is Feb 16, with the central bank stating recently that it will take all necessary actions to bring down inflation.
- Local equities are off by around 0.50% so far today. The headline index now close to 6900, after struggling to hold above 7000 earlier in the year. Yesterday offshore investors sold $26.4 of local shares, the largest daily outflow since end Nov last year.