Risks Remain, But Bullish Break Signals Further Upside For Peso

Aggressively hawkish comments from he Philippine central bank helped push the peso through the key PHP44.00/US$ level we flagged up on July 18 today, setting up further upside as expectations of higher interest rates continue to bolster the unit. A firm break above five-month trendline resistance sets up the potential for a significant move higher as the PHP heads back towards its recently-departed upward trend channel, the upper band of which arrives around PHP41.00/US$.

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