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Extending Losses

PHP

Spot USD/PHP has advanced and last sits +0.140 at PHP50.125, after playing catch up with yesterday's greenback strength. Further gains past Aug 19 high of PHP50.615 would turn focus to Aug 17 cycle high of PHP50.667. Meanwhile, a pullback under the 50-DMA/Aug 26 low at PHP49.860/49.752 would give bears a green light for targeting Aug 4 low of PHP49.605.

  • USD/PHP 1-month NDF last seen +0.080 at PHP50.220. A jump above Aug 19 high of PHP50.760 would expose Aug 16 high of PHP50.990, while losses past yesterday's low of PHP49.400 would clear the way to Jul 2 low of PHP49.250.
  • BSP Governor Diokno said Thursday that the central bank will continue liberalising FX rules.
  • Elsewhere, Philippine economic officials said that the economic output will not return to pre-pandemic levels until the end of 2022 or early 2023, but prospects for this year "remain encouraging".
  • Philippine bank lending data may hit the wires over the coming days, with Markit M'fing PMI coming up next Wednesday.

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