The market bias for PHP to USD is currently bearish, reflecting recent trends in the currency pair.
The Philippine peso has experienced a considerable drop due to several factors: the Bangko Sentral ng Pilipinas recently cut interest rates, indicating a shift towards monetary easing. Expectations of additional rate cuts by the Federal Reserve also contribute to a weakening USD. Furthermore, the Philippines' growth outlook has deteriorated, impacted by governance issues that may reduce economic confidence.
In the near term, expect the PHP to remain within a stable range, roughly around current levels, which have shown little volatility recently.
Potential upside risks include improved governance and economic reforms in the Philippines, which could restore investor confidence. Conversely, a significant decline in global growth or worsening inflation could further pressure the peso, sustaining its current bearish trajectory against the dollar.
