Philippine House Speaker Files Economic Relief Bill

Spot USD/PHP remains rangebound just above the PHP48.000 mark, a familiar line in the sand. The rate sits at PHP48.046, a touch lower on the day.

• The rate has stuck to a narrow range since the beginning of Dec, with markets expecting interest rates to stay unchanged for now. Last month, BSP Gov Diokno signalled a "long pause" on the interest rate front at least through the first half of 2021.
• As a reminder, BSP delivers its latest monetary policy decision this Thursday. Unsurprisingly, all sell-side analysts surveyed by BBG expect the MPC to stand pat.
• Philippine House Speaker Lord Allan Velasco submitted a PHP420bn economic relief bill to Congress and pointing to the wounds inflicted on the Philippines' GDP by the Covid-19 pandemic.
• Philippine Finance Dept said that the country is aiming to raise $23.7bn externally in 2021, with $5.5bn contributed by funds from offshore commercial markets.
• The presidential spokesman will hold a press briefing, while Pres Duterte will hold speak during the weekly Talk to the Nation in the evening.
• A break under the PHP48.000 figure would support the bearish case, opening up Oct 20, 2016 low of PHP47.945. Conversely, a move through Jan 28 high of PHP48.145 would open up the 100-DMA at PHP48.253.