May 05, 2022 01:11 GMT
Spot USD/THB opened sharply lower after Wednesday's public holiday, with the baht reacting to the FOMC's monetary policy decision. The rate last changes hands -0.410 at THB34.098.
- Sales past the nearby THB34.000 figure would give bears a green light for targeting Mar 28 high of THB33.802. Bulls need a rally above May 3 high of THB34.522 before targeting May 11, 2017 high of THB34.815.
- Looking ahead, monthly CPI data will be published later today. Headline inflation is expected to have slowed to +4.81% Y/Y in April from +5.73% prior, with economists forecasting a broadly unchanged rate of core CPI growth.
- As a side note, bear in mind that the government removed a cap on diesel prices from May 1, which is expected to boost inflation from this month, making it more difficult for the BoT to maintain its accommodative stance.
- PM Prayuth chairs a meeting on special economic zones today, while the national Covid-19 task force will provide an update on the local outbreak.