Peso Ticks Away From Two-Week Low

Spot USD/PHP trades -0.074 at PHP50.156 after printing a two-week high yesterday. Bears look for a deeper pullback from that level and a move through Sep 16 low of PHP49.715 would open up Aug 31/Sep 3 lows of PHP49.660/49.659. Bulls eye Sep 8 high of PHP50.315 for initial resistance and a break here would expose Aug 19 high of PHP50.615.

• USD/PHP 1-month NDF last seen -0.050 at PHP50.230. Bears would be pleased by a dip through Sep 15 low of PHP49.730, while bulls keep an eye on Sep 7 high of PHP50.400.
• Pres Duterte has approved a pilot programme of face-to-face classes in more than 100 schools in low-risk areas. The Presidential Palace also said that the new Covid-19 alert level system implemented in Metro Manila will not be expanded to the entire country next month, despite the absence of negative reports about the scheme.
• Bangko Sentral ng Pilipinas will deliver their monetary policy decision on Thursday, most analysts expect no change to the policy rate (there is just one dovish dissenter from Capital Economics among those surveyed by BBG, calling for a 25bp rate cut).