Diokno Sees RRR Cuts On The Table; Watch Out For The Golden Cross

Spot USD/PHP has recouped its opening loss and last changes hands at PHP48.390, virtually unchanged on the day, following BSP Gov Diokno's comments surrounding potential for further RRR cuts.

• Diokno said Monday that RRR cuts remain on the table and reiterated his pledge to keep monetary policy settings accommodative as economic recovery gains pace. He appeared in a briefing of economic managers alongside Finance Sec Dominguez, who said that the gov't looks to trim inessential spending and explore additional sources of revenue. Econ Planning Sec Chua noted that economic managers will wait for Q1 GDP report before revising growth targets.
• Philippine vaccine tsar Galvez said that the second batch (480,000 doses) of Sputnik vaccines will arrive on Apr 29 alongside 500,000 doses of the Sinovac product. The initial batch of 15,000 Sputnik jabs should arrive tomorrow.
• Philippine budget balance is expected at some point today, while money supply & bank lending are due Friday. Overall BoP for the month of March should be released by the end of this week.
• A notable technical development is unfolding on the daily chart, with the 50-DMA advancing towards the descending 200-DMA, which may soon culminate in a golden cross formation.
• For now, bulls look for a jump above Apr 21 high of PHP48.450, followed by the 200-DMA at PHP48.520. Bears look for a dip through the 100-DMA/Apr 20 low at PHP48.283/48.271.