More Areas Moved To Alert Level 3, Metro Manila To Be Kept At Current Level For Now

Spot USD/PHP remains comfortably within yesterday's range, even as the government raised the Covid-19 Alert Level to 3 in 28 further areas across the country. Separately, Health Sec Duque noted that unless the healthcare utilisation rate tops 70% (it now stands at 55%), he will recommend keeping the Alert Level in Metro Manila unchanged.

• Spot USD/PHP trades -0.086 at PHP51.119. Bears look for a dip through Jan 5 low of PHP50.900 before taking aim at the 50-/100-DMAs at PHP50.473/50.439. Conversely, a jump above Jan 10 high of PHP51.440 would suggest that bulls are having the upper hand.
• USD/PHP 1-month NDF last seen +0.100 at PHP51.280. Bulls see Jan 4 high of PHP52.140 as their key near-term target, while bears look for a sell-off past the 50-/100-DMAs at PHP50.600/50.584.
• Fitch warned that the Philippines' next President will need to tackle fiscal challenges stemming from the deterioration in the government's fiscal position during the Covid-19 pandemic. They expect the public debt-to-GDP ratio to jump to 62.9% this year from 39.6% in 2019.
• Next week's Philippine overseas remittances data will draw attention.