Peso Within Touching Distance From 200-DMA Ahead Of BSP Decision

Spot USD/PHP retested its 200-DMA yesterday but failed to break through, reaffirming the importance of that moving average as a near-term resistance. The rate last trades -0.022 at PHP48.646, awaiting BSP MonPol decision (click here to see our preview).

• The Philippines Stock Exchange said it will loosen regulations for companies seeking IPOs in 2021 and 2022 and will consider the impact of the Covid-19 pandemic on their profitability.
• OCTA Research estimated that the reproduction rate of Covid-19 in Metro Manila has edged lower to 1.91 from 1.99. The so called R rate represents the average number of people infected by a positive Covid-19 case. Meanwhile, the organisation signalled that two regions outside of the NCR+ bubble (Metro Manila + surrounding provinces), namely Batangas and Pampanga, recorded spikes in new cases.
• Elsewhere, the presidential spokesman insisted that restrictions implemented within the NCR+ bubble are not a form of lockdown as "the economy is open."
• A clean break above the 200-DMA at PHP48.683 would represent a noteworthy bullish development, opening up Feb 23 high of PHP48.755. Bears look for a fall through Mar 23 low of PHP48.550, which would allow them to take aim at Mar 12 low of PHP48.370.
• Philippine BoP data should hit the wires at some point during the remainder of this week, there is no fixed time of the release.