Lockdown In NCR+ Bubble Extended

Spot USD/PHP has retreated despite forming a golden cross pattern, as the 50-DMA has moved above the 200-DMA. The rate last sits -0.068 at PHP48.403, with greenback sales outweighing any potential impact of the decision to extend lockdown in the capital region.

• Pres Duterte said Wednesday that current MECQ lockdown measures in the NCR+ bubble will be extended through May 14, in line with recommendations of the Health Dept & healthcare workers. The decision was at odds with an earlier proposal from regional mayors, who backed cautiously loosening some restrictions. Health Sec Duque warned that healthcare & ICU utilisation rate is above 70%, which is deemed a high-risk threshold.
• The presidential spokesman said that the gov't doesn't think about making Covid-19 inoculations mandatory amid a shortage in vaccine supplies.
• Bubbling tensions with China resurfaced as Defence Sec Lorenzana reiterated that Chinese vessels are trespassing in Philippine waters and argued that Beijing "should desist and leave."
• Philippine money supply & bank lending data are due tomorrow, while overall BoP is expected to hit the wires by the end of this week.
• A fall through the 100-DMA/Apr 20 low at PHP48.288/48.271 would please bears, while bulls look for a break above the descending 200-DMA, which intersects at PHP48.506.