Covid Worry Lingers, Duterte Reiterates He Might Run For VP

Spot USD/PHP has caught a bid early on, rising past its Jul 15 cycle high of PHP50.420. The rate last sits +0.190 at PHP50.430, with topside focus falling on May 28/22, 2020 high of PHP50.770/50.795, followed by May 18, 2020 high of PHP50.906. Bears look for a dip through Jul 13 low of PHP49.940, which would expose Jul 2 low of PHP49.085.

• USD/PHP 1-month NDF last seen +0.170 at PHP50.700. Bulls see May 22, 2020 high of PHP50.990 as their initial target, while bears keep an eye on Jul 13 low of PHP50.100.
• A senior official at the Philippine Finance Dept said that strong fundamentals support peso stability, adding that "prudent macroeconomic management, containing the spread of the virus and ramping up the vaccination programme, and safely reopening the economy will be important in maintaining investor confidence."
• Elsewhere, BSP Gov Diokno suggested that the gov't should expedite its vaccination drive and implement structural reforms, if it wants to boost economic growth.
• Pres Duterte reiterated that he might run for vice presidency in 2022, this time justifying it by the possibility to retain immunity to lawsuits. The recent weeks saw Duterte float the idea multiple times. Meanwhile, the ruling Partido Demokratiko Pilipino-Lakas ng Bayan ousted its leader Senator Manny Pacquiao, who has recently ramped up criticism of Pres Duterte.
• As flagged previously, the Philippines detected the first case of the Delta variant of the coronavirus last Friday, which may have weighed on local sentiment at the start to a new week.
• Philippine overall BoP may hit the wires over the coming days, with budget balance due Friday.