PHP/USD Outlook:
Slightly positive, but likely to move sideways, as the PHP is trading just above its recent average, but without strong drivers.
Key drivers:
• The Bangko Sentral ng Pilipinas has signaled a possible readiness to allow the peso to weaken, increasing concerns over its stability.
• The trend in oil prices has remained volatile, impacting the Philippines' import costs and, consequently, the peso.
• MUFG's revised forecast for the peso reflects fears of economic performance and corruption influencing the currency.
Range:
Expect the PHP/USD to hold within a stable range, with limited moves likely.
What could change it:
• Upside risk: A stronger-than-expected U.S. jobs report could support a more stable dollar and push USD lower.
• Downside risk: More significant economic challenges or further rate cuts in the Philippines could pressure the peso to weaken.
