Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Top News

Peso may stay at P56 level as US data dampen hopes of big Fed rate cut

by
October 6, 2024
in Top News
0
Peso may stay at P56 level as US data dampen hopes of big Fed rate cut
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter
BW FILE PHOTO

THE PESO may stay at the P56-per-dollar level this week after strong US jobs data tempered market expectations of large rate cuts by the US Federal Reserve.

The local unit closed at P56.295 per dollar on Friday, strengthening by 7.5 centavos from its P56.37 finish on Thursday, Bankers Association of the Philippines data showed.

However, week on week, the peso declined by 21.8 centavos from its P56.077 finish on Sept. 27

The peso recovered against the dollar on Friday after September inflation slowed to an over four-year low, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The dollar-peso closed lower following the release of lower local inflation data,” a trader likewise said by phone.

Headline inflation slowed to an over four-year low of 1.9% in September from 3.3% in August and 6.1% a year ago, the Philippine Statistics Authority reported on Friday.

This was below the BSP’s 2%-2.8% forecast for the month and the 2.5% median estimate yielded in a BusinessWorld poll of 15 analysts.

The September consumer price index was also the slowest in 52 months or since the 1.6% print in May 2020.

In the first nine months, headline inflation averaged 3.4%, matching the central bank’s full-year forecast and well within its 2-4% annual target.

For this week, the trader said the peso could remain at the P56 level against the dollar following strong September US employment data.

The trader sees the peso moving between P56 and P56.40 per dollar this week.

Meanwhile, Mr. Ricafort expects the local unit to range from P56.20 to P56.40 on Monday.

The dollar jumped to a seven-week high on Friday and was on track to post its best week since September 2022 after a surprisingly strong jobs report for September led traders to cut bets that the Federal Reserve will make further 50-basis-point (bp) rate cuts, Reuters reported.

US nonfarm payrolls increased by 254,000 jobs last month, beating the 140,000 new jobs that economists polled by Reuters had anticipated.

The unemployment rate also unexpectedly slipped, to 4.1% from 4.2% in August.

Improving economic data and more hawkish comments from Fed Chair Jerome H. Powell last week, when he pushed back against expectations of continuing hefty rate cuts, led traders to reduce bets on a 50-bp reduction at the Fed’s next meeting on Nov. 6-7.

Those odds were completely wiped out after Friday’s data. Traders are now pricing in no chance of a 50-bp rate cut, down from around 31% earlier on Friday and 53% a week ago, the CME Group’s FedWatch Tool shows. A 25-bp reduction is seen as almost certain, with traders also seeing a small chance that the Fed will leave rates unchanged.

Bank of America expects the Fed to cut rates by 25 bps per meeting through March 2025, followed by reductions of 25 bps each quarter until the end of 2025, BofA US economist Aditya Bhave said in a report on Friday.

Chicago Fed President Austan Goolsbee called the data “superb” and said more labor market data along those lines would boost his confidence the economy is at full employment with low inflation.

The dollar index reached 102.69, the highest level since Aug. 16, and was on track for its best weekly percentage gain since September 2022.

The dollar has also been boosted by safe-haven demand on concerns about widening conflict in the Middle East. — Aaron Michael C. Sy with Reuters

ShareTweetPin

Related Posts

Have a taste of the perfect day in paradise with SULÀ Spirits
Top News

Have a taste of the perfect day in paradise with SULÀ Spirits

January 8, 2025
First months of 2025 likely rainy amid La Niña conditions, says PAGASA
Top News

First months of 2025 likely rainy amid La Niña conditions, says PAGASA

January 8, 2025
December inflation rises to 2.9%
Top News

December inflation rises to 2.9%

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
PHL end-December dollar reserves drop to $106.8B
Top News

PHL end-December dollar reserves drop to $106.8B

January 7, 2025
Next Post
Stocks may extend climb on slower Sept. inflation

Stocks may extend climb on slower Sept. inflation

Recommended

UNDP, IBM tap AI tools to model equitable access to energy

UNDP, IBM tap AI tools to model equitable access to energy

September 24, 2024
Happiness Linked to Productivity, Not Free Time, Survey Finds

Happiness Linked to Productivity, Not Free Time, Survey Finds

December 4, 2024
PAL working on certification for SAF-powered flights 

PAL working on certification for SAF-powered flights 

August 5, 2024
How Digital Signage Simplifies Event Promotions for Businesses

How Digital Signage Simplifies Event Promotions for Businesses

November 25, 2024
The rise of minimalist wallets: Streamlining your everyday carry

The rise of minimalist wallets: Streamlining your everyday carry

October 21, 2024
Empower Your Home: Master basic WiFi troubleshooting with Globe AT HOME

Empower Your Home: Master basic WiFi troubleshooting with Globe AT HOME

August 21, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved