Baht Appreciates As Equity Inflows Pick Up, BoT Speak Eyed

Spot USD/THB has eased off as positive equity dynamics support the baht. The rate deals -0.130 at THB37.645, after lodging new multi-week lows, with bears now looking for a move towards the 50-DMA/Oct 6 low at THB37.252/37.125. Topside focus falls on Oct 20 cycle high of THB38.465.

• The recovery in foreign demand for Thai stocks is picking up steam, with offshore players snapping up a net $162.60mn in local shares Tuesday, the largest inflow since mid-Aug. The SET index staged a clean breach of its 50-DMA, closing on next layer of resistance provided by the 200-DMA.
• Domestic data docket is headlined by October CPI during the remainder of the week. The report will be published on Friday, with headline inflation expected to have eased to +6.00% Y/Y from +6.41%, albeit core inflation may have accelerated to +3.20% from +3.12%.
• Note that BoT Dep Gov Mathee Supapongse speaks on Thai economic challenges next year this morning.
• PM Prayuth and ruling party leader Prawit on Tuesday played down the potential for an early dissolution of the legislature, after opposition lawmakers raised this as an option.