Inflation Slows Less Than Expected, Previous Reading Revised Lower

USD/PHP trades -0.011 at PHP51.040, holding yesterday's range after the release of inflation data out of the Philippines. Bears need a slide through Jan 5 low of PHP50.900 before targeting the 50-DMA at PHP50.754. Bulls look for a rebound above key resistance provided by the PHP51.500 figure.

• USD/PHP 1-month NDF last +0.060 at PHP51.150. Bulls look to a jump above Jan 18 high of PHP51.950, while bears would be pleased by a fall through Feb 1 low of PHP50.830.
• The Philippine CPI inflation slowed to +3.0% Y/Y in January, printing above the median estimate of +2.8%. The December reading was revised lower to +3.2% from +3.6%. The Philippine Statistics Agency noted that January saw the lowest rate of annual inflation since November 2020.
• Bangko Sentral ng Pilipinas sees inflation on a downward trajectory and expects it to settle close to the mid-point of target range in 2022 & 2023, according to Gov Diokno.
• The official added that the central bank has space for accommodative monetary policy and does not need to move in lockstep with the Fed, with RRR adjustments on the table this year. However, it may step into the FX market to smoothen volatility.
• On the political front, Ferdinand "Bongbong" Marcos, one of the main contenders in the presidential race, refused to take part in a media forum with other candidates. He has largely been absent from mainstream media, relying on popularity in social media instead.