Your Morning Fix

• USDPHP opened slightly higher at 52.41 following the well-bid tone of the USD in the region.
  • Fixing demand supported USDPHP on dips, but continued presence of local USD supply at 52.50 and relatively light corporate demand capped further upside moves.
  • Selling interest from offshore names drove USDPHP to its intraday low of 52.26, and eventually closing at 52.33 on some late squaring of risk positions.

• 25/30 support levels continue to serve as decent support for the local pair ahead of the 52.15/20 area.
  • 50 remains the near-term resistance level due to sizable local offers. With dealers still wary of holding onto sizable bets below the 52.30 area, we remain better buyers on dips, particularly ahead of 52.20 where opportunistic buying is likely to scale in heavily.
• We recommend to buy USD on dips closer to 52.30 with corporate demand expected to scale in on any dip.
• We reiterate that uncertainty amidst global geopolitical tensions and the now more aggressive US Fed policy path will continue to drive a stronger USD bias.