Philippines May Miss GDP Target, See Covid Resurgence

Spot USD/PHP trades -0.026 at PHP48.530 as we type, holding a relatively tight range. A fall through the 50-DMA at PHP48.436 would allow bears to target PHP48.319, the low print of Apr 6. Conversely, a jump above the 200-DMA at PHP48.596 would open up Mar 17/Feb 23 highs of PHP48.736/48.755.

• Philippine Econ Planning Sec Chua warned that the country can miss its target of a 6.5% GDP growth this year, as it continues to battle the resurgence of the coronavirus. Chua said that next month's economic data will guide the review of economic targets. He added that "we were too risk averse: we shut down a big part of the economy when other countries didn't need to do that."
• Philippine vaccine tsar warned that "the pandemic is far from over" and the country may witness another surge in Covid-19 infections, which could emerge in Jun/Jul.
• Malacañang reported that Pres Duterte will hear the proposals of senators who oppose lowering tariffs on pork.
• The Philippines has deployed four Navy ships to patrol the South China Sea, where Chinese vessels have been spotted, and summoned the Chinese ambassador to file an official protest against Chinese vessels' presence at the disputed reef.
• TASS reported that Philippine Pres Duterte discussed vaccine supply in a phone call with Russian Pres Putin.
• BSP will release overseas remittances data tomorrow. BBG consensus forecast is for a 2.0% Y/Y increase, with estimates ranging between -2.0% and +12.9%.