Peso Weakens Amid Assessment Of Omicron Risk

Spot USD/PHP trades +0.055 at PHP50.420, with topside technical focus falling on Nov 26 high of PHP50.558, followed by Nov 22 high of PHP50.765. On the flip side, a pullback under the 100-DMA at PHP50.353 would allow bears to take aim at Nov 19 low of PHP50.220.

• USD/PHP 1-month NDF last seen +0.020 at PHP50.490. A break above PHP50.640, which capped gains on Nov 25 & 26, would open up Nov 23 high of PHP50.890. Bears keep an eye on Nov 19 low of PHP50.290 and a break here would expose Nov 12 low of PHP49.820.
• The Philippines' vaccine czar Galvez announced that the ongoing national inoculation drive will be extended by two days through Friday, as officials hope to deliver jabs to millions of citizens. The next mass vaccination drive is scheduled for Dec 15-17.
• The emergence of the Omicron coronavirus variant has ramped up pressure on the gov't to inoculate the citizens. The Department of Tourism yesterday called the new variant "a small hiccup" for the national tourism industry and expressed hope for further "increasing domestic traffic in most of our destinations" going forward.
• The Bankers Association of the Philippines has informed about the extension of trading hours for USD/PHP spot and swap markets. They will be open from 9:00 to 16:00, with a one-hour break between noon and 13:00, starting next week. The mid-day break will be lifted from Jan 3.