USD/PHP Pushes Higher, As Equities Retreat From Multi-Week Highs

Spot USD/PHP is back in the 54.45/50 region, around +0.20% above closing levels from the end of last week. This is in line with a generally USD/Asia bid tone evident today. More broadly, there still appears to be USD demand evident around the 54.20/25 region. On the topside the simple 50-day MA comes in around 54.76. The 20-day EMA is also near this level (around 54.74).

• Local equities are weaker today, off by ~0.45% at this stage, with the PCOMP index moving away from a break above the 6600 level. The trend has been better on the equity front in recent weeks, while offshore investors were more positive in terms of flows last week (Friday saw +$10.5mn).
• Finance Secretary Diokno stated over the weekend the BSP may pause at the next policy meeting. This comes after last week's +25bps rate rise. He stated non-monetary measures will help bring down inflation pressures. He was also constructive on the PHP outlook if inflows rise.
• BSP Governor Medalla stated the central bank may pause rate hikes, if m/m inflation falls. Note the March release is due next Wednesday. Before then we get bank lending data, which may show the rate hike impact having more of an impact, budget data and the PMI early next week.