Duterte Refuses To Ease Movement Restrictions Before Vaccine Rollout

Spot USD/PHP re-opened above yesterday's highs, just. It has shed gains since and last changes hands at PHP48.680, with local players digesting Pres Duterte's decision not to ease movement restrictions. The early uptick has allowed USD/PHP to have a look above resistance from Oct 16 high of PHP48.708, which capped gains on Monday.

• Implied vols kept pushing higher across the curve yesterday, hitting best levels since early/mid-Jan.
• Pres Duterte resisted mounting pressure from economic off'ls to relax Covid-19 curbs, with his spokesman noting that the president won't authorise such a move before the rollout of vaccines. Senator Bong Go, one of Duterte's closest aides, sent a message to reporters noting "no vaccine roll-out, no MGCQ."
• Meanwhile, the number of Covid-19 cases rose by 2,288 on Monday, which was the largest increase since Nov 8.
• Mamerto Tangonan, the head of BSP's Payments and Currency Management Sector, was tapped to become the central bank's new Dep Gov. Tangonan has expertise in digital payments and his nomination is seen as part of BSP's efforts to facilitate the Philippines' transformation into a cash-light society.
• Philippine House of Reps passed a bill, which expedites the procurement of Covid-19 jabs and sets up a PHP500mn indemnification fund for compensating people who experience adverse effects of the vaccines. The Philippine Star cited a snr administration off'l as admitting that the gov't didn't know about the need to strike an indemnity agreement with the vaccine provider, which delayed the delivery of the jabs.
• Bulls would be pleased by a renewed push higher, with the 200-DMA at PHP48.891 providing the initial topside target. Bears look for a retreat under Feb 19 low of PHP48.395, towards the 100-DMA at PHP48.235.
• Philippine overall BoP will hit the wires at some point this week, while budget balance comes out on Friday.