Lower Quarantine Level, But With "Heightened Restrictions"

Spot USD/PHP trades +0.038 at PHP47.855, but yesterday's extremes remain intact, after the Philippines tweaked quarantine rules in the capital region.

• From a technical perspective, a break above May 11 high of PHP47.921 would shift focus to May 5 high of PHP48.133. Conversely, losses past May 10/12 lows of PHP47.793/90 would open up Feb 16 low of PHP47.721.
• USD/PHP 1-month NDF last seen +0.050 at PHP48.030. A clearance of May 13 high of PHP48.130 would clear the way to May 5 high of PHP48.260. On the downside, initial focus falls on Feb 2/May 10 cycle lows of PHP47.840.
• The gov't took the initiative after an underwhelming Q1 GDP report and said that mobility curbs in the NCR+ bubble will be eased. The region will be moved to "General Community Quarantine," the second-lowest level of restrictions, until the end of the month. The Presidential Palace clarified that some of the heightened restrictions will remain in place, despite lowering the overall level of curbs.
• Looking ahead, Monday's overseas remittances data provides the next point of note on the local docket.