Halister News

(Bloomberg) -- USD/PHP may break support at 50-DMA of 46.570 to drop to breakaway gap at 46.230-46.325 area in short-term if Philippines’ central bank keeps its monetary policy on hold, Bloomberg strategist David Finnerty writes.

• BSP will leave its overnight borrowing rate unchanged at 4.00%, according to 14 of 15 economists in a Bloomberg survey, with one predicting a 50 bps rate cut; decision due at 4:00pm local time tomorrow
• Central bank doesn’t see any “strong” need to change policy settings, Gov. Tetangco said early this month; added BSP is mindful of financial market volatility that may arise from reactions to monetary policy in advanced economies and is closely watching international commodity prices
• Peso may also be boosted if presumptive President Duterte announces cabinet members who investors believe will expand upon Aquino’s economic policies, which could encourage investors to place more funds into local assets
• USD/PHP down 0.3% at 46.600; FX pair’s breakaway gap consists of April 20 high of 46.230 and April 21 low of 46.325
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.