The CAD to PHP exchange rate is currently showing a bearish bias as it trades around 14-day lows.
Key drivers include:
- Interest rates remain stable, with Canada maintaining its policy rate at 2.25%, while the Philippines has implemented recent rate cuts, widening the interest rate differential.
- Oil prices are near 30-day highs, supporting the CAD as Canada benefits from higher revenues.
- The Philippine economy is facing challenges like reduced growth projections and a widening graft scandal, which may weigh on the peso.
In the near term, the expected trading range for CAD to PHP is likely to reflect stability, oscillating within a consistent band around current levels.
An upside risk could arise from unexpectedly strong Canadian economic indicators, while a downside risk may come from further easing of monetary policy by the Bangko Sentral ng Pilipinas, potentially leading to renewed weakness in the PHP.