The Canadian Dollar is trading against the Philippine Peso at 37.46 this morning, down -0.46% with a YTD return of -0.56%. The pair’s open rate sat at 37.39, up from the previous close of 37.63. CAD/PHP is anticipated to have a day range between 37.38 and 37.48, their 52-week range is forecasted to fluctuate minimally between 34.89 and 38.54.
CAD/PHP has experienced bearish growth since November, increasing from the 36.00 level to the 38.00 level at the end of January. The continued threat of COVID-19 and the new variant of the virus has kept the currency pair from bouncing back to the 39.00 support level that was last reached at the beginning of 2020 but traders have been sitting in the wings to see if the distribution of vaccines will impact the success of CAD/PHP.
Even with low exchange rates moving into 2021, the Department of Finance (DOF) reported that “the peso remained one of the most stable currencies in Asia last year despite the economic crisis brought about by the coronavirus pandemic.”
The chief economist at the DOF also “attributed the peso’s continued strength and stability to the country’s strong balance of payments (BOP) position and gross international reserves.”
During 2020 the Philippines “generated a BOP surplus of $12.8 billion” due to slower imports and outward payments, according to finance undersecretary and chief economist Gil Beltran.
With minimal exports and imports, the Philippines has maintained some economic strength as less money was being spent, but their currency has still reached record lows due to ongoing cycles of volatility.
CAD/PHP is forecasted to hold bearish trading patterns as the pair faces ongoing stress from the pandemic and global economic contraction but “strong macroeconomic fundamentals” are expected to help support the PHP in the coming weeks.
By Surina Nath