Philippines Crack Down On Foreign Arrivals As Covid Infections Surge

Spot USD/PHP has trimmed some of its earlier gains after failing to engage with the 200-DMA, which kicks in at PHP48.743. Worth flagging that the 50-DMA's move above the 100-DMA has provided a favourable technical backdrop for bulls, but they have struggled to force a break above the nearby resistance levels.

• With the rate last trading at PHP48.650, bulls look for renewed gains past the 200-DMA/Feb 23 high at PHP48.743/48.755. Above there opens Aug 7, 2020 high of PHP49.100. Conversely, a fall through Mar 12 low of PHP48.370 would open up Feb 17 low of PHP48.281.
• The Philippine Tsy released budget balance for the month of Jan, with deficit seen at PHP14.1bn. The Bureau of the Tsy said that revenues fell 11.51 Y/Y to PHP260.7bn, while expenditures rose 1.18% Y/Y to PHP274.8bn.
• Philippine Finance Sec Dominguez pledged to maintain fiscal prudence while using available fiscal resources to stimulate economic recovery. Dominguez signalled that fiscal and monetary policy efforts will work in tandem "to keep the economy afloat."
• The Civil Aeronautics Board said that the Philippines will cap foreign arrivals to the main Manila airport to 1,500/day from Mar 18 to Apr 19, in a bid to arrest the renewed surge in Covid-19 infections. Separately, the local Covid-19 taskforce said it will ban foreigners and returning nationals who had not been working overseas from entering the country from Mar 20 to Apr 19.
• Looking ahead, focus turns to Friday's BoP data.