The Canadian Dollar is trading at 37.70 against the Philippine Peso today, up 0.06% with a YTD return of 0.09%. The pair’s open rate was 37.63, slightly lower than the previous close of 37.68. CAD/PHP day range will sit between 37.58 and 37.72, the 52-week range is forecasted to fluctuate between 34.89 and 39.12.
CAD is on the rise as the new year begins, the CAD/PHP exchange rate reached a 6-month high last week when the currencies’ rate approached the 38.00 level. After dropping to the 35.00 level when the pandemic hit, traders will be watching to see if CAD is able to sustain growth as the pair attempts to recover to the 38.00 level that was maintained throughout 2019.
There will be slow movement as bears wait to see if PHP will suffer in the coming weeks as imports to the country are said to be on the rise. Michael Ricafort, the chief economist at the Rizal Commercial Banking Corporation said “the improvement of imports, including hedging for the payments of imports, along with continued re-opening of the economy, are expected to limit the peso’s appreciation.”
The Philippine market was supported well over the holiday season due to an inflow of remittances but after this seasonal surge CAD still looks to be a strong contender as international oil prices begin to correct themselves.
FX Street reported that “following a sharp decline at the start of the week, crude oil gained traction on Tuesday and touched its highest level since late February above $53, providing a boost to the commodity-sensitive loonie.”
In the coming weeks bulls will be able to tell if CAD/PHP will be a worthy investment in 2021, the Q1 performance is already off to a good start for CAD but this is dependent on whether oil prices will continue to recover.
By Surina Nath