Peso Catches Bid Before Long Weekend

Spot USD/PHP trades -0.160 at PHP51.960 after Tuesday's price action amounted to a gravestone Doji candlestick, signalling potential for a bearish reversal. Sales past the 100-DMA at PHP51.225 would bode well for bears. Conversely, bulls need a rebound above yesterday's high of PHP52.278 before targeting Mar 22/14 highs of PHP52.471/52.487.

• USD/PHP 1-month NDF last -0.140 at PHP52.080. Bears look for a fall through the 100-DMA at PHP51.396, while bulls keep an eye on Mar 22 high of PHP52.790.
• BSP Gov Diokno reiterated that the central bank stands ready to use monetary policy measures amid broadening price pressures, but at this point it is "still best" to use non-monetary steps. The central bank has not yet seen "clear signs" of second-round effects, with inflation expected to return to the target range over the policy horizon.
• The death toll from Typhoon Megi which hit the Philippines in the recent days rose to 43 as central and southern parts of the country experienced floods and landslides. The Department of Agriculture estimated the agricultural damage from the typhoon at PHP270.3mn.
• Philippine markets will be closed from tomorrow as the country observes Easter holidays.