Peso to move sideways before release of US GDP, PCE reports

The peso may continue to move sideways against the dollar this week, with key US data releases expected to be major trading drivers.

The local unit closed at PHP 55.90 per dollar on Friday, weakening by 19.5 centavos from its PHP 55.705 finish on Thursday, Bankers Association of the Philippines data showed.

Week-on-week, the peso strengthened by six centavos from its PHP 55.96 close on Feb. 16.

Dollars exchanged went up to USD 1.25 billion on Friday from USD 1.24 billion on Thursday.

The peso strengthened on Friday after the dollar weakened due to strong US data that tempered expectations of an early rate cut by the US Federal Reserve this year, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For this week, the release of the second estimate for US gross domestic product (GDP) data on Wednesday and the January US personal consumption expenditures (PCE) price index report on Thursday will affect peso-dollar trading, he said.

Mr. Ricafort sees the peso ranging from PHP 55.70 to PHP 56.20 per dollar this week. — AMCS