USD/PHP trades +4 pips at PHP50.60,......>

DOLLAR-PHP: USD/PHP trades +4 pips at PHP50.60, has ebbed off highs over the

last hour or so. The rate opened on the front foot after the release of

underwhelming Philippine data. Unemployment increased to 5.3% from 4.5%, while

CPI inflation slowed to +2.6% Y/Y from +2.9% vs. consensus forecast of +3.0%.

BSP expected inflation to fall within the +2.4-3.2% range.

- BSP Gov Diokno said yesterday that Philippine central bank will not take its

cue from the Fed and deliver an off-cycle rate cut. Diokno added that the Bank

will consider external developments, Feb CPI data & price outlook at its meeting

slated for Mar 19 (he reiterated this post-CPI release).

- Bulls need to retake the 50-DMA at PHP50.77 to gain some momentum & set their

sights on the Mar 2 high at PHP51.07. Bears need the rate to take out the Feb 14

low of PHP50.42 before they take aim at the Jan 14 low of PHP50.37, worst level

since early 2018.