Baht Comes Under Pressure On Above-Forecast C/A Deficit, Budget Debate Resumes

Spot USD/THB popped higher at the re-open, after data published Tuesday showed that Thailand's BoP current account balance flipped into a deficit. The rate changes hands +0.118 at THB34.335 as we type, with bulls looking to a move through May 26 high of THB34.350. This would bring May 13 high of THB34.783 into play. Bears look for a dip through May 30 low of THB34.048 before setting their sights on key support from May 5 low/round figure of THB34.018/34.000.

• The opening shots in Thailand's budget debate were fired on Tuesday as PM Prayuth presented the bill to parliament. "The THB3.18tn budget is intended to steer the economy and achieve tangible results in line with a prediction that the economy will grow 3.2-4.2% this year," he told lawmakers. The debate resumes today.
• Thailand's BoP current account balance flipped into a deeper than expected deficit ($3.351bn) in April. The deficit was widest since April 2013, as the shortfall net services, income and transfers grew.
• Echoing common knowledge, BoT Senior Director Chayawadee said that the recovery in tourism is key to Thailand's economic rebound. She tipped hat to improvement in the sector, noting that it "supported the service sector [in April]."
• Focus turns to the BoT's Business Sentiment Index, which fell to 48.2 in April. The latest reading will be published today.