The current market bias for the CAD to PHP exchange rate is bearish.
Key drivers include:
- The Canadian dollar is pressured by a persistent downturn in manufacturing, reflected in the recent PMI contraction and declining oil prices, which are below their average.
- The Philippine peso is weighed down by recent monetary easing and negative growth forecasts, leading to its all-time low against the USD.
- Canada reported strong job additions, which could boost the CAD if growth trends continue.
The near-term trading range is expected to remain stable, with fluctuations likely between current levels and untapped resistance in the coming months.
An upside risk for the CAD could come from a rebound in oil prices or stronger-than-expected economic data. Conversely, further declines in Philippine economic indicators or aggressive rate cuts by the BSP could pressure the peso and affect the CAD to PHP rate.