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Duterte Approves Rice & Pork Tariff Tweaks

PHP

Spot USD/PHP is rangebound amid little in the way of notable domestic news/data flow. The rate last trades flat at PHP47.815, comfortably within Friday's range.

  • A break above May 11 high of PHP47.921 would draw attention to PHP48.133, which capped gains on May 5. Downside focus falls on Friday's low of PHP47.776 and a break here would expose Feb 16 low of PHP47.721.
  • USD/PHP 1-month NDF last seen at PHP47.910, little changed on the day. A move through May 13 high of PHP48.130 would give bulls a green light for targeting May 5 high of PHP48.260. Conversely, a dip through Friday's/today's low of PHP47.820 is needed to reignite bearish momentum.
  • Pres Duterte signed off on temporary cuts of rice duties, in a move devised to address supply-side drivers of inflation. He also approved an adjustment of earlier pork tariff cuts after striking a deal with Senators, who stepped in to protect domestic hog industry.
  • Philippine overseas remittances will be released today, there is no fixed time of the release. Annual growth in remittances is expected to accelerate to +8.4% Y/Y from +5.1%, according to BBG consensus forecast.

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