USD/PHP Stays Close To Key Resistance, Local Data Provoke Little Response

Spot USD/PHP stays in close proximity to key resistance from PHP52.500, last trading +0.094 at PHP52.489. A breach of that key figure would shift focus to Aug 15, 2019 high of PHP52.620. Bears see the 50-DMA/Apr 28 low at PHP52.029/51.970 as their initial targets.

• USD/PHP 1-month NDF last seen +0.160 at PHP52.890. Bulls look for gains past May 3 high of PHP53.240, while bears keep an eye on the 50-DMA at PHP52.287.
• The unemployment rate fell to 5.8% in March from 6.4% prior as the labour market continued to tighten, with the participation rate up to 65.4% from 63.8%.
• Meanwhile, the Philippines' trade deficit deepened to $5.004bn in March. The annual increase in exports topped expectations, but so did imports growth and by a wider margin.
• Note that President Duterte declared May 9 (Monday) a special non-working holiday to encourage citizens to take part in national and local elections.
• The focus will be on the presidential/vice-presidential races. Barring any major last-minute plot twists, the Marcos-Duterte tandem seems poised to secure a comfortable victory, ensuring continuity of the incumbent president's general course.