Philippines: Inflation softens – ANZ

FXStreet Team FXStreet

Headline inflation softened to 2.5% y/y in March. Transport prices will likely remain a drag on inflation in the coming months amid lower global oil prices, economists at ANZ Bank inform. USD/PHP is trading at 50.6855.

Key quotes

“Headline inflation decreased by 0.1% m/m in March due to a 0.3% m/m and 1.8% m/m decline in ‘Food and beverages’ and ‘Transport’ prices, respectively.”

“Core inflation eased to 3.0% y/y in February from 3.2% y/y previously.”

“We expect inflation to average 1.9% through the year, a touch below the BSP’s 2-4% target band.”

“We still expect the Bangko Sentral ng Pilipinas (BSP) to cut the policy rate by 25bps to 3% at its May meeting.”

Author

FXStreet Team

FXStreet

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.