Light Headline Flow Keeps Peso Rangebound

Spot USD/PHP has inched lower, last sits at PHP48.06, marginally worse off. Local headline flow has been light, with focus on broader picture developments. Bears continue to eye Dec 4 cycle low/Oct 20, 2016 low at PHP48.02/47.95. A breach of these levels would expose channel floor/76.4% retracement of the 2016 - 2018 rally at PHP47.83/78. Meanwhile, a bounce above the 23.6% recovery of the Nov 13 - Dec 4 sell-off would give bulls a green light for targeting Nov 19 high of PHP48.34.

• After hours Friday, BSP revised its BoP & foreign reserves projections for 2020 & 2021. The central bank now expects BoP surplus to reach $12.8bn in 2020 & $3.3bn in 2021 and forecasts foreign reserves to register at $105bn in 2020 & $106bn in 2021.
• Elsewhere, Senate Minority Leader Drilon said that the Congress has allocated just PHP2.5bn for Covid-19 vaccines under the PHP4.5tn 2021 budget awaiting Pres Duterte's approval. The rest of funding of the PHP72.5bn earmarked for the jabs will have to come from other sources.
• Philippine overseas remittances data provides the main point of note on the local data docket this week, with BSP due to deliver its MonPol decision Thursday.