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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.
PHP
USD/PHP has rebounded firmly in the first part of trade today. The pair is back to 56.87. We closed at the end of last week at 56.625. Today's loss is -0.45% in PHP terms, with the currency one of the weakest performers in the region so far today.
- The USD and safe haven currencies are outperforming amid broader risk off tone in markets. For PHP, a focus point on the fallout of the Hamas attack on Israel will be on the oil price impact. Brent and WTI benchmarks are +4% higher in the first part of trade today.
- Citi's Philippines terms of trade proxy and Bloomberg's spot energy price index have had a strong correlation in recent years (inversely), see the chart below.
- Higher oil prices should weigh on PHP's all else equal. For now though, the pair remains within recent ranges, upside resistance at 57.00 has yet to be tested.
- On the data front, the main focus will be on tomorrow's August trade data.
Fig 1: Citi PHP Terms Of Trade Proxy & Spot Energy Prices (Inverted)
Source: Citi/MNI - Market News/Bloomberg
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.
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