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200-DMA Gives Way


Spot USD/PHP has punched through its 200-DMA (PHP48.620) after multiple failed attempts to do so since mid-March. The rate last trades +0.034 at PHP48.630.

  • Philippine trade deficit shrank in Feb, but slightly less than expected. Exports fell unexpectedly, while imports grew less than forecast.
  • BSP Gov Diokno spoke with BBG TV today, noting that the central bank's familiar monetary stance remains appropriate and he sees no need for any drastic moves. Diokno said he sees 2021 GDP growth at +6-7% Y/Y and called for more fiscal stimulus, adding that BSP has acted on the gov't's request to extend loan.
  • Philippine Agriculture Sec Dar said at a virtual briefing that the gov't will not extend price the cap on pork prices in Metro Manila. Pork prices are expected to moderate going forward, as more supplies arrive.
  • The Philippine Star reported that local gov't units (LGUs) started the payout of PHP22.9bn assistance for qualified recipients in the NCR+ "bubble."
  • Philippine FDA approved the Sinovac vaccine for use among elderly citizens.
  • A further rally above Mar 17 high of PHP48.736 would open up Feb 23 high of PHP48.755. Conversely, a pullback under the 50-DMA at PHP48.410 would expose Apr 6 low of PHP48.319.
  • The local docket is virtually empty during the remainder of this week.

Fig. 1: Philippines Exports Y/Y vs. Imports Y/Y (%)

Source: MNI - Market News/Bloomberg

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