Philippines To Leave Current Covid-19 Response In Effect, BSP Decision Up Today

Spot USD/PHP operates -0.082 at PHP50.213 ahead of the conclusion of BSP monetary policy meeting, having printed its worst levels since mid-Nov earlier in the session. Bears look for further losses past Nov 15 low of PHP49.775, a key near-term support. On the flip side, gains past Nov 26 high of PHP50.558 would shift bullish focus to Nov 22 high of PHP50.765.

• USD/PHP 1-month NDF unch. at PHP50.270 at typing, with bears looking for a dip through Dec 13 low of PHP50.000 towards Nov 12 low of PHP49.820. Bulls look to a break above the 50-DMA, which kicks in at PHP50.576.
• Health Sec Duque told reporters that the Philippines will not change its Covid-19 response strategy for now, as officials monitor developments following the emergence of a new variant of the virus. The current Alert Level 2 will be in effect through the remainder of the year, despite declining daily Covid-19 cases.
• The Congress approved the proposed PHP5.024tn national budget for 2022 on Wednesday, sending it to Pres Duterte for signature.
• Bangko Sentral ng Pilipinas will almost certainly leave the key interest rate unchanged today. See our preview for more colour on their upcoming decision.