HALISTER1: Philippine Central Bank Presence Caps USD/PHP: Security Bank

Philippine Central Bank Presence Caps USD/PHP: Security Bank

(Bloomberg) -- Bangko Sentral ng Pilipinas Governor Amando Tetangco’s pronouncement he’ll provide liquidity as needed being viewed as a sign that excessive volatility won’t be allowed, tempering USD/PHP buying in Manila’s spot market, says Andre Ibarra, chief dealer at Security Bank.
  • “They’re always there to curb volatility. As traders see that the BSP is there, they don’t excessively buy dollars,” Ibarra says by phone in Manila
  • Favorable trade data -- narrowing of trade deficit and rise in exports -- not having any impact as market focuses on external developments
  • USD/PHP psychological resistance at 49; may test 48.850 that’s intraday high yesterday
  • NOTE: Pair rose as much as 0.27% to 48.725 today, now at 48.65
  • Expectations that Trump presidency will lead to tax cuts and more spending tend to be inflationary, hitting long-end U.S. Treasuries, which are being tracked by local debt yields: Ibarra
  • Philippine yields may rise at least 5-10bps today, he says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Amando Tetangco (Bangko Sentral ng Pilipinas)
Andre Ibarra (Security Bank Corp)

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