Baht Continues To Struggle On Dovish BoT, Weak Growth Outlook

Spot USD/THB pushed higher Wednesday, extending gains as the Bank of Thailand's statement was deemed dovish. The rate last changes hands +0.010 at THB33.143, after printing a fresh cycle high of THB33.147. The next topside target is provided by Apr 2, 2020 high of THB33.177. Bears look for a pullback under Jul 29 low of THB32.820.

• The BoT kept its benchmark policy rate on hold with four votes in favour, two dissenting dovish votes and one absence. The Bank also lowered its GDP growth forecasts, while the language of the statement turned more cautious.
• The central bank later said that it will make sure that the baht remains stable and does not cause any disruption for the business sector. The baht has been comfortably the worst Asia EM performer this year, as the resurgence of Covid-19 derailed plans to reopen the critical tourism industry.
• Thailand's July CPI is due later today. Analysts expect headline inflation to have decelerated to +0.88% Y/Y from +1.25%, with estimates ranging from +0.60% to +1.40%. Later in the day, the University of the Thai Chamber of Commerce will release the latest reading of their consumer confidence gauge.