Peso Goes Offered Ahead Of Domestic Holiday, BSP See Dec CPI At +3.5%-4.3% Y/Y

Spot USD/PHP gapped higher at the re-open and has extended gains since. The rate trades +0.218 at PHP50.665 and bulls set their sights on Nov 22 high of PHP50.765. A break above that level would draw attention to Oct 22 high of PHP50.907. Meanwhile, a fall through Dec 24 low of PHP49.960 would open up Dec 21/Nov 15 lows of PHP49.853/49.775.

• USD/PHP 1-month NDF last +0.070 at PHP50.780. Topside focus falls on Nov 23/Nov 3 & 4 highs of PHP50.890/50.920. Conversely, bears keep an eye on the 200-DMA at PHP49.700.
• BSP Gov Diokno said that the central bank expect headline CPI inflation to settle within the +3.5%-4.3% Y/Y range this month, as higher electricity and food prices should be offset in part by lower domestic petroleum prices and a firmer peso.
• Elsewhere, new home prices rose 6.3% Y/Y in Q3, following a 9.4% Y/Y slump recorded in Q2. Loans for new housing units rose 51.1% Y/Y in the third quarter.
• Local bank lending and money supply data are expected to hit the wires at some point today.
• As a reminder, the Philippines will observe a public holiday on Thursday, resulting in a closure of onshore markets.