USD/PHP: Further upside on the cards – UOB

Strategists at UOB Group’s Quarterly Global Outlook suggest USD/PHP could pick up further upside traction and retest the 53.00 area in Q2 2022.

Key Quotes

“Locally, expectations of twin deficits for two consecutive years and uncertainty surrounding the country’s presidential election on 9 May could sap investors’ risk appetite in Philippine assets.”

“Therefore, we project a slight upward trajectory for USD/PHP to 53.0 in 2Q22, 53.5 in 3Q22, and 54.0 in both 4Q22 and 1Q23 (vs previous target range of 52.5-53.5).”