The CAD to PHP exchange rate has a bullish outlook.
Key drivers include a favorable interest rate differential, with the Bank of Canada maintaining a steady policy rate while the Bangko Sentral ng Pilipinas cut rates recently. Additionally, Canada's strong job growth is boosting confidence in the CAD. Oil prices have stalled, impacting the CAD, which typically moves alongside crude prices; however, its recent decline may pressure the CAD slightly.
The expected near-term trading range for CAD/PHP is likely to stay within a stable corridor, reflecting its current value above the 3-month average. Upside risks include stronger-than-anticipated retail sales data in Canada, which could enhance the CAD. Conversely, further weakness in oil prices or persistent depreciation in the Philippine peso could exert downward pressure on the exchange rate. Adjustments due to geopolitical factors could also shift trader sentiment.