Baht Jumps On Return From Long Weekend

Spot USD/THB posted a sharp drop as onshore markets re-opened this morning, with Thailand back from a public holiday that began last Thursday. The space has played catch up to a moderation in hawkish Fed expectations, with strong PMI data released out of Thailand today lending further support to the baht.

• With spot USD/THB last -0.620 at THB36.188, bears look for continued losses past Jul 11 low of THB35.882, which would open up the 50-DMA at THB35.356. Bulls need a rebound above Jul 21 high of THB36.945 to confirm that broader uptrend remains intact.
• S&P Global M'fing PMI improved to 52.4 in July from 50.7 prior as business conditions "improved to a near-record degree amid one of the quickest expansions in output in the history of the survey." On the pessimistic note, the survey flagged a slip in employment and signs of elevated inflationary pressures.
• The BoT will publish its Business Sentiment Index later in the day. Elsewhere, monthly CPI will be released Friday, with headline price growth expected to have accelerated to +7.90% Y/Y.