USD/PHP Happy To Hold Familiar Range Just Above PHP48.00

USD/PHP deals +3 pips at PHP48.08, happy to continue its sideways trade. The rate is poised to finish the week on a slightly firmer footing, albeit it remains trapped within a familiar range just above the PHP48.00 mark.

• Implieds remain at depressed levels, curve steepens:
• 1-week tenor has resumed losses, hitting worst levels since late Dec, last seen at 3.5725
• 1-month tenor has slid to levels not seen since 2013, last sits at 3.8075
• 3-month tenor has edged further away from a 20-year low printed on Weds, last sits at 4.0850
• 1-year tenor has inched higher after printing a record low on Weds, last seen at 4.5350
• The Philippines decided to ease movement restrictions on minors in areas currently under the lowest quarantine level. The decision was backed by economic officials, despite a pushback from the Health Ministry.
• Just to recap, on Thursday BSP Dep Gov Dakila said that the central bank has ample room to keep MonPol loose and its repertoire of policy tools includes RRR tweaks. Dakila said that inflation may remain above the mid-point of the target range in H1, before decelerating to sub-3% later in the year.
• Gains past the 50-DMA/Jan 11 high at PHP48.12/13 are needed to open up the 23.6% retracement of the Oct 16 - Dec 28 slide at PHP48.17. Conversely, a dip through Dec 28 low/round figure of PHP48.01/00 would give bears a fresh impetus.
• Next week, focus turns to Filipino trade report (Wednesday) & quarterly GDP (Thursday).