USD/PHP Remains Range Bound Despite Equity Slump

USD/PHP has had a modest 20pip range (54.47/54.67) so far today, last sitting just above 54.51. Note the 20-day EMA comes in at 54.87, while recent lows sit just under 54.30.

• The slump in local equities, down 2.80% at this stage isn't impacting FX sentiment. Equities are tracking sharply lower into month end, as the index lost 1.15% yesterday.
• There doesn't appear to be an obvious catalyst for the equity market weakness, although plans for the government to tax nickel exports may be weighing at the margins.
• Elsewhere, the BSP stated that the next inflation report is expected to be in the 7.5-8.3% range. This prints on the 7th of Feb (next Tuesday). At this stage the market consensus sits at 7.4% y/y for this print. The BSP continues to state it will do what is necessary to prevent a broadening of price pressures.
• Bank lending data showed some easing, with loans now at 13.1% y/y from a revised 13.5% in Nov. The cumulative impact of BSP tightening likely to be slowing growth.