Halister News

(Bloomberg) -- An acceleration in Philippines’ July inflation may trigger a fall in USD/PHP to 100-DMA support, Bloomberg strategist Andrew Robinson writes.

• Consumer prices probably rose 2.1% y/y following 1.9% gain in June, median est. in Bloomberg survey shows; ests. range from 1.9% to 2.2%; data due 9am local time tomorrow
  • If data match forecasts, it would be first time in 15 months it is within the central bank’s 2%-4% target range
• Outlook for domestic inflation remains well-anchored, and domestic demand continues to be solid, BSP Governor Tetangco said on July 28; no need to change monetary policy stance
• July inflation probably rose 1.9% in July, unchanged from July, govt economist said on July 31
• USD/PHP little changed at 47.005 today; 100-DMA is at 46.632, pair has not traded below this MA since June 24
  • Slow stochastics and Williams %R are both falling
• NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice