Peso Ignores Beat In Overseas Remittances, Gov't Gives Nod To Dry Run Of School Reopening

Spot USD/PHP re-opened slightly higher only to dip towards neutral levels in early trade, but then has resumed grinding higher. The peso has ignored a beat in overseas remittances and continued to lose ground against the greenback. USD/PHP last changes hands +2 pips at PHP48.07.

• Growth in foreign remittances slowed to +2.9% Y/Y in October from +9.3% but still topped consensus forecast of +2.2% (estimates ranged from -4.3% to +4.5%). While we will have to wait for December data, remittances tend to increase this month, typically providing support to the peso.
• Philippine Pres Duterte's spokesman said that the country will test a return to in-person teaching next month in areas with low Covid-19 risk. Students won't be required to attend schools without their parents' permission.
• The Philippine Covid-19 taskforce's off'l said yesterday that Manila is looking to finalise a deal to purchase 25mn doses of Sinovac coronavirus vaccines due for delivery by March.
• A break above the 23.6% recovery of the Nov 13 - Dec 4 sell-off would allow bulls to target Nov 19 high of PHP48.34. Bears look for losses past Dec 4 cycle low/Oct 20, 2016 low at PHP48.02/47.95. A breach of these levels would expose channel floor/76.4% retracement of the 2016 - 2018 rally at PHP47.83/78.
• As a reminder, BSP will deliver its monetary policy decision on Thursday.