The CAD is currently range-bound against the PHP. Key drivers for this include:
- The interest rate differential remains relatively consistent, with the Bank of Canada holding rates steady at 2.25%.
- CAD's trajectory is influenced by softer manufacturing data and oil prices, which recently reached $61.78, 1.6% below their average.
- Canadian employment showed strength with a notable jobs gain, supporting confidence in the CAD.
Expect the CAD to trade within a moderate range, reflecting its recent stability. A significant risk to the CAD could arise from falling oil prices, which would negatively impact the commodity-linked currency. On the other hand, a more robust U.S. economy could lift the CAD if demand for Canadian exports increases.
For the PHP, recent developments include a record low exchange rate influenced by local and U.S. monetary easing and a downward revision in growth projections. The PHP could experience strengthening if effective governance reforms boost investor confidence.