USD/PHP has ebbed lower and last.........>

DOLLAR-PHP: USD/PHP has ebbed lower and last trades at PHP49.97, 5 pips worse

off and just below yesterday's worst levels.

- The BSP surprised markets yesterday with a 50bp cut to their benchmark

interest rate. Most of the economists surveyed by BBG called for no change, with

some looking to a 25bp cut  & just one analyst expecting a 50bp cut.

- BSP Gpv Diokno explained that the Monetary Board judged that "a further

reduction in the policy rate amidst a benign inflation environment would help

mitigate the downside risks to growth and boost market confidence".

- Dep Gov Dakila added that that BSP raised its inflation forecasts for this

year (to +2.3% /Y from +2.2%) and 2021 (to +2.6% Y/Y from +2.5%).

- A clearance of Jun 23 high of PHP50.25 would draw attention to Jun 15 high of

PHP50.38, a key near-term support. Bears see Jun 11 low of PHP49.82 as their

initial target, followed by Jun 8 low of PHP49.80.

- Next week's Philippine docket is headlined by Wednesday's Markit M'fing PMI.