OCTA Research Group Backs Looser Restrictions In Metro Manila

Spot USD/PHP last trades +0.032 at PHP50.452, as local markets reopen after a long weekend. Bulls need a clearance of Oct 22 high of PHP50.907 before targeting round figure/Sep 27 high of PHP51.000/51.036. On the downside, a pullback under the 50-DMA at PHP50.407 would draw attention to Sep 22 low of PHP50.085.

• USD/PHP 1-month NDF last seen -0.100 at PHP50.570. Bears keep an eye on the 100-DMA at PHP50.263, while bulls look to a move through PHP51.080, which limited gains on Oct 18 & 19.
• The Philippines' Markit M'fing PMI for the month of October printed at 51.0, slightly up from September's 50.9. IHS Markit noted that the data "signalled a slight pick-up in growth across the Philippines manufacturing sector," but "the goods producing sector was yet again hit by delivery delays, material shortages and rising costs, which consequently inhibited output growth."
• Looking ahead, the PSA will release monthly labour market data on Thursday, with trade balance due to hit the wires on Friday.
• Elsewhere, OCTA Research Group said that Covid-19 reproduction rate in Metro Manila inched higher but remains at low-risk. The group backed moving the capital region to Alert Level 2 and easing restrictions accordingly.