USD/PHP Continues To Trade Just Above PHP48.00, Philippines Report Wider Trade Deficit

USD/PHP sticks to a familiar range, last trades marginally below neutral levels at PHP48.07, playing catch up to overnight greenback sales. A dip through the key PHP48.00 mark would generate fresh bearish momentum, while bulls keep an eye on the 50-DMA at PHP48.10, followed by Dec 22, 2020 high of PHP48.13.

• The Philippines published trade data for the month of Dec earlier today. Trade deficit unexpectedly expanded, on the back of a surprise fall in exports, which was coupled with a slightly smaller than exp. decline in imports.
• Filipino agricultural output fell 3.80% Y/Y in Q4, with rice production falling 1.4% in that period.
• Cavite Gov Remulla informed that the province has scrapped a $10bn deal with MacroAsia & China's CCC for an airport project.
• Finance Sec Dominguez said that the Philippines could attract more foreign investors by slashing CIT & streamlining incentives.
• Implieds consolidate at/near cycle lows after yesterday's slides seen across the curve:
  • 1-week tenor slid to a fresh record low of 2.8275 yesterday; it has edged away from there this morning but remains under 3.0000
  • 1-month tenor has extended losses and now sits at 3.6450, worst level since 2013
  • 3-month tenor has inched higher this morning after falling to levels not seen since 2000
  • 6-month tenor trades flat close to its worst levels since 2006 printed early on
  • 1-year tenor remains trapped in a familiar range, just above record lows registered a week ago
• Focus moves to Q4 GDP data, due for release on Thursday.