Thursday, February 13, 2014

Morgan Stanley sees the USD/PHP

[Dow Jones] Morgan Stanley sees the USD/PHP in a corrective decline towards the 200-day moving average (last at 43.42). The bank notes that the Philippines' balance of payments is positive despite the equity market outflows that have led to peso weakness since May 2013. "This makes Philippines better positioned to withstand capital outflows compared to its EM peers. The BSP has turned more hawkish on inflation too, and expectations of future rate hikes should also provide yield support to PHP," the bank says.