Philippines See Faster 2021 GDP Growth, Narrowing Budget Deficits Going Forward

Spot USD/PHP trades -0.027 at PHP50.335 at typing after the Philippines raised its 2021 GDP forecast. Bears look for further losses past Dec 9 low of PHP50.198, which would clear the way to Nov 15 low of PHP49.775. Conversely, a bounce above Nov 26 high of PHP50.558 would expose Nov 22 high of PHP50.765.

• USD/PHP 1-month NDF last +0.030 at PHP50.430. Bulls look for a jump above the 50-DMA at PHP50.586, while bears see Dec 13 low of PHP50.000 as their initial target.
• Budget Asst Sec Toledo said in a virtual briefing that the gov't has raised its economic growth outlook for 2021 to +5.0%-5.5% Y/Y from +4.0%-5.0%% and forecast narrowing fiscal deficits over the coming years.
• Philippine overseas cash remittances rose 2.4% Y/Y in October, missing median estimate of +4.0% and slowing from +5.2% recorded in September.
• On the political front, Pres Duterte dropped his senatorial bid and will not run in 2022. The announcement from Commission on Elections spokesman came just days after Duterte's daughter and presidential candidate Sara endorsed him for Senator.
• As a reminder, Bangko Sentral ng Pilipinas will deliver their monetary policy decision tomorrow.