Duterte Pledges Support For Businesses, More Openness To Foreign Investors

Spot USD/PHP last trades -0.032 at PHP50.308, with downside focus falling on Jul 23 low of PHP50.085, followed by Jul 13 low of PHP49.940. Bulls look for a rally above Jul 19 high of PHP50.496, before taking aim at May 28/22, 2020 highs of PHP50.770/50.795.

• USD/PHP 1-month NDF last seen -0.030 at PHP50.450. Bears would be pleased by a fall through Jul 22/13 lows of PHP50.140/50.100, while bulls keep an eye on Jul 19 cycle high of PHP51.390.
• Pres Duterte delivered his final State of the Nation address to Congress on Monday, pledging to lead the Philippines out of the pandemic, extend support to businesses affected by the Covid-19 outbreak and open the country to more foreign investors. Duterte urged lawmakers to relax rules on international retailers and professionals, implement tax reforms and allow foreigners to increase their ownership of public utilities (Senate Pres Sotto earlier promised to prioritise legislation on foreign ownership). The President devoted much of his speech to defend his controversial campaign against drug criminals using his characteristic violent rhetoric, as he threatened to "kill" and "destroy" those who "destroy my country."
• Moody's said that the Philippines is at the risk of "long-term economic scarring" owing to the Covid-19 pandemic, while the 2022 presidential elections increase uncertainties surrounding the outlook for reforms.
• The Dept of Health noted that the daily vaccination rate fell in the past few days because of heavy rainfall and floods, which forced some local government units to suspend inoculations.
• Philippine budget balance, overall BoP & bank lending may hit the wires over the coming days.