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FinSec Dominguez Expects Return To Growth In Q2, BSP Watches Oil Prices

PHP

Spot USD/PHP has shed a handful of pips this morning and last sits -0.046 at PHP47.950. Bears need a break under May 19 low of PHP47.769 to gain a fresh impetus. Conversely, gains past May 27 high of PHP48.185 would open up the 100-DMA at PHP48.265.

  • USD/PHP 1-month NDF last -0.060 at PHP48.060, with downside focus falling on May 14 & 17 cycle lows of PHP47.820. Bulls keep an eye on PHP48.310, which represents the high print of May 25.
  • S&P affirmed the Philippines' sovereign credit rating at BBB+, with outlook left at stable. The agency said that the Philippines is expected to undergo "healthy" economic recovery, which will result in reductions of fiscal deficits over the next 2-3 years.
  • BSP Gov Diokno said Thursday that inflation should remain within the target range this year and in 2022 despite rising oil prices, which nonetheless call for more vigilance.
  • FinSec Dominguez said that the economy is expected to return into growth this quarter, amid a projected containment of the local Covid-19 outbreak.
  • The local docket for next week features money supply & bank lending (Monday), Markit M'fing PMI (Tuesday) & CPI (Friday).

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