USD/PHP Consolidates Above PHP48.000, Diokno Says It's To Early To Hike Rates

USD/PHP recoiled above the PHP48.000 figure on Tuesday after falling below that level for the first time since 2016 earlier this week. Greenback strength has helped the pair higher and it now trades at PHP48.391.

• BSP Gov Diokno told BBG that it is too early to hike interest rates and "the current policy settings are appropriate." He called a new law helping lenders sell non-performing assets a "back-up measure" as bad loans are "fairly manageable."
• The aforementioned legislation was signed by Pres Duterte yesterday and provides tax incentives for banks selling non-performing assets via newly-formed management firms.
• The presidential spokesman confirmed that the Philippines ordered enough Covid-19 vaccines to meet its 2021 goal of immunising most of the population.
• House Speaker Lord Allan Velasco publicly backed the proposal from the National Economic Development Authority to move the Philippines into the least strict quarantine regime.
• Bulls look for a move through Nov 13 high of PHP48.483 before targeting Oct 23 high of PHP48.658. Bears need a pullback under the 100-DMA at PHP48.229 & 50-DMA at PHP48.070 to bring the PHP48.000 into play.
• Philippine BoP data comes out on Friday.