Onshore Peso Tad Firmer, Gov't Sees Fighting Inflation As Top Priority

Spot USD/PHP changes hands -0.060 at PHP58.505, with bears looking for a renewed test of the 50-DMA (PHP57.992) and bulls keeping an eye on the all-time high of PHP59.000. USD/PHP 1-month NDF last +0.11 at PHP58.59, with bulls targeting the record high of PHP59.460, as bears take aim at the PHP58.276 50-DMA.

• FinSec Diokno noted that "addressing high inflation is the number one priority of the economic team," while the government said it has earmarked around PHP206.5bn for subsidies and cash assistance in 2023, as elevated commodity prices add fuel to global inflationary pressures. Philippine consumer inflation smashed expectations last month, while the local statistics authority warned that price pressures may intensify.
• Runaway inflation and peer pressure are cornering Bangko Sentral ng Pilipinas into turning more aggressive when it comes to monetary rightening, with Governor Medalla vowing to replicate the Fed's recent 75bp rate hike at the BSP's next rate review.
• Foreign investors bought a net $4.54mn in Philippine stocks last Friday, while the PSEi crept higher and has extended gains this morning. It is yet to test resistance from its 50-DMA, which kicks in at 6,258.
• The Philippines' unemployment data will be published tomorrow. Note the delayed nature of the release, it will cover the month of September. Looking further afield, Q3 agriculture output will be out Wednesday, with GDP coming up Thursday.