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PHP has outperformed USD as sentiment....>

DOLLAR-PHP: PHP has outperformed USD as sentiment has improved. Participants
have focused on the bright side re: coronavirus situation, hoping that the
spread of the disease & its economic consequences can be contained. Elsewhere,
China decided to reduce some punitive tariffs on the U.S., further lifting risk
appetite. All eyes are now on the BSP, set to deliver its MonPol decision one
day after Thai policymakers cut rates to counter fallout from coronavirus.
- Most analysts anticipate that the BSP will trim borrowing costs. Governor
Diokno added to those expectations as he said today that it would be better to
cut interest rates sooner than later, given the lag in policy transmission. The
Governor added that he expects a further 50bp of easing this year. Re: PHP he
noted that it is stable & the central bank has "hardly" stepped into FX mkt.
- Elsewhere, Philippines' top diplomat said that Pres Duterte's plan to end a
military pact w/U.S. would hurt bilateral military & econ relations.
- USD/PHP trades at PHP50.75, 16 pips worse off. A fall below trendline support
at PHP50.73 would clear the way to the Jan 14 low of PHP50.37. Bulls eye the
23.6% retr. of Aug 15 - Jan 14 slide at PHP50.90, ahead of the PHP51.11 100-DMA.

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