Baht Gives Away Some Of Initial Gains, Consumer Confidence Data Eyed

The impetus unleashed by the latest U.S. CPI reading translated into a softer re-open for spot USD/THB, but the rate has trimmed initial losses as baht weakness has returned, with participants assessing the local tourism industry's recovery outlook.

• The rate last sits -0.065 at THB33.305. A broader resumption of losses could threaten a break of Jan 5 low/bear channel floor at THB33.160/33.094, a key near-term layer of support. Conversely, a rebound above channel top/Jan 10 high at THB33.714/33.747 would shift focus to Dec 22 high of THB33.835.
• The government has signalled their intention to tackle rising living costs. PM Prayuth has asked agencies to consider price caps on consumer goods and instructed the Commerce Ministry to address the issue. In addition, per a Bangkok Post report, the Department of Trade are investigating instances of hoarding goods and selling them at inflated prices.
• The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) maintained their 2022 GDP growth forecast at +3.0%-4.5% Y/Y as they expect the government not to impose another harsh lockdown. Their decision was at odds with a recent warning from the Federation of Thai Industries, who suggested that the JSCCIB could downgrade their projection.
• FinMin Arkhom outlined the government's plan to expand the tax base and boost revenue by taxing profits from cryptocurrency trading and removing the tax waiver on share sales from the local stock exchange.
• The University of the Thai Chamber of Commerce will release the results of their consumer confidence survey for the month of December today.