Diokno Sees No Need For Further Loans To Government Under Pandemic Rules

Spot USD/PHP has given away its opening uptick and now changes hands at PHP50.620, little changed on the day. Domestic headline flow has failed to provide much in the way of notable catalysts.

• Bears need a dip through Oct 8 low/50-DMA at PHP50.385/50.346 to get some fresh momentum. Meanwhile, a move through Oct 12 high of PHP50.885 would shift focus to key resistance from round figure/Sep 27 high of PHP51.000/51.036.
• USD/PHP 1-month NDF last seen -0.060 at PHP50.770. Bears set their sights on Oct 7 low/50-DMA at PHP50.490/50.475. Conversely, gains past Oct 6 high of PHP51.220 would clear the way to Sep 27 high of PHP51.520.
• BSP Gov Diokno said Thursday that "maybe there's no need" for the central bank to extend more loans to the gov't, after the renewal of a PHP540bn loan earlier this week. Diokno also reiterated his familiar lines on inflation, noting that it is "not a cause of worry."
• OCTA Research Group noted that all local government units in Metro Manila are now at only moderate risk for Covid-19 amid a rapid decline in new cases and the virus reproduction rate.