USD/PHP has ebbed 6 pips lower and.......>

DOLLAR-PHP: USD/PHP has ebbed 6 pips lower and sits at PHP49.93, challenging

yesterday's multi-year lows. The Philippines released domestic CPI &

unemployment data earlier today. CPI inflation slowed to +2.1% Y/Y from +2.2%,

but topped exp. of +2.0%. BSP Gov Diokno said yesterday that it may print below

+2.0% Y/Y in the second half of the year, amid softer oil prices and economic

headwinds. The jobless rate surged to a record high of 17.7% from 5.3% in April.

- Late on Thursday, the Philippines' Budget Department revised its 2021 GDP

growth estimate to 8%-9% from 7.1%-8.1% and noted that Pres Duterte has asked

for a boost to next year's the budget. Also on Thursday, Philippine lawmakers

passed a PHP1.3tn stimulus package designed to help economic recovery.

- Yesterday's low of PHP49.94 continues to draw bearish attention as the rate

probes the water below there. Consolidation under that level would clear the way

to the lower 3.0% Bollinger band/Jan 5, 2018 low at PHP49.71/69. Bulls look for

a rebound above PHP50.00,

towards Jun 3 high/May 14 low at PHP50.23/25.

- Looking further ahead, the Philippines report trade balance next Wednesday.