USD/PHP has added 20 pips and last.......>

DOLLAR-PHP: USD/PHP has added 20 pips and last trades at PHP51.03. The rate has

moved higher in the lockstep with USD/Asia as yuan weakness has spilled over

into Asian EMFX amid the re-opening of Chinese onshore markets. The peso has

been further pressured by locally heightened worries re: coronavirus.

- On Sunday the first death from the novel coronavirus outside of China was

reported in the Philippines. President Duterte extended travel ban to all

persons coming from mainland China, Hong Kong and Macau.

- On the bright side, Markit Philippines m'fing PMI survey suggested that the

expansion in the sector accelerated in Jan, in spite of difficulties caused by a

volcanic eruption. Coming up later this week is CPI, due on Wednesday. The BSP

research dept exp. CPI to print at +2.5-3.3% Y/Y vs. the Dec reading of +2.5%.

- As flagged before, the BSP are set to deliver their MonPol decision on

Thursday, with most analysts expecting policymakers to trim borrowing costs.

- A break above the 100-DMA at PHP51.15 would expose 51.23, the 23.6%

retracement of the Aug 15 - Jan 14 sell-off/high of Jan 8. Bears look for a drop

below the 50-DMA at PHP50.81 before targeting the Jan 29 low of PHP50.69.