HALISTER1: USD/PHP May Test 50-DMA If Price Growth Beats Estimate: Analysis

USD/PHP May Test 50-DMA If Price Growth Beats Estimate: Analysis

(Bloomberg) -- USD/PHP may decline to 50-DMA if Philippines’ October CPI rises more than economists estimate and brings forward expectations of central bank tightening, Bloomberg strategist Andrew Robinson writes.
  • USD/PHP down 0.1% at 48.345 today; 50-DMA is at 47.744, pair has not traded below that level since Sept. 8
    • Slow stochastics are bearish with %K line falling to 63, on verge of crossing below %D line
  • Consumer prices probably rose 2.3% y/y, unchanged from Sept., median est. in Bloomberg survey shows; ests. range from 2.1% to 2.5%; data due Nov. 4 at 9am local time
  • BSP will watch for economic and financial developments that could affect inflation, BSP Governor Tetangco said last week; expects Oct. CPI to be 1.9% to 2.7%
  • Economists currently do not expect central bank to start raising rates until 1Q 2017, another Bloomberg survey shows
  • 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
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

To de-activate this alert, click here

UUID: 7947283