The peso will cross a range ahead of US PCE data

The PESO could remain within a range against the dollar this week as the market awaits the release of the May US Personal Consumer Expenditure (PCE) Index report, which is the US Federal Reserve’s preferred inflation gauge.

The local unit closed at P58.19 per dollar on Friday, weakening by six centavos from Thursday’s P58.13, data from the Bankers Association of the Philippines showed.

Week on week, the peso fell 57 centavos from its close of P57.62 on May 17.

The peso devalued against the dollar on Friday following hawkish signals from the minutes of the Fed’s latest meeting, Security Bank Corp. chief economist Robert Dan J. Roces said. in a Viber message.

This, in addition to mostly stronger-than-expected U.S. economic data of late, supported the dollar against other currencies, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort. in a Viber message.

For this week, Mr. Ricafort said the May US PCE price index, to be released on Friday, May 31, will likely be the main catalyst for peso-dollar trading.

U.S. consumer sentiment data released last week will also impact the peso, Mr. Roces added.

Mr. Ricafort sees the peso moving between P57.90 and P58.30 per dollar this week, while Mr. Roces said currency trading could remain fluid. — AMC Sy