Baht Holds Tight Range After Censure Debate

Spot USD/THB last deals at THB36.700, virtually unchanged on the day, as participants assess the consequences of failed no-confidence votes against the Prime Minister and several ministers.

• From a technical standpoint, bearish focus falls on Jul 11 low of THB35.882. If a dip below there coincides with the RSI's (last at 72.6) return from overbought territory, bears would look for a deeper sell-off. Bulls need a jump above Jul 21 high of THB36.945 to confirm that the underlying topside impetus remains strong. Above there lies Sep 19, 2006 high of THB37.951.
• PM Prayuth and 10 Cabinet ministers survived co confidence votes in parliament on Saturday. This gives the government some breathing space, with no more censure debates planned ahead of the general election that should take place early in 2023. The outcome also reinforces expectations that the FY2023 budget bill will be passed.
• Wednesday will be busy in terms of local releases, with a slew of BoP data coming up. Elsewhere, customs trade data are expected to hit the wires in the coming days.
• PM Prayuth will speak at the opening ceremony of the 2nd China International Consumer Products Expo 2022 today, while Thai Health Ministry will decide on monkeypox alert level.