Baht Near Multi-Year Lows After Thailand Cuts GDP Outlook & Extends Covid Curbs

Spot USD/THB operates just shy of its multi-year highs, last at THB33.432, marginally above neutral levels. Should the pair manage to pierce Aug 10 high of THB33.490, topside focus would turn to Jul 20, 2018/Oct 3, 2017 highs of THB33.518/33.545. Meanwhile, a slide past Aug 13 low of THB33.143 would bring Jul 29/20 lows of THB32.820/32.780 into view.

• GDP data reported yesterday topped expectations, with Thailand avoiding the anticipated quarterly contraction in Q2. However, the National Economic and Social Development Council cut the 2021 GDP outlook to +0.7%-1.2% Y/Y from +1.5%-2.5% forecast in May, as Thailand is battling its worst outbreak of Covid-19.
• Thailand's coronavirus task force confirmed Monday that lockdown measures in 29 provinces most affected by the outbreak of the disease would be extended through the month-end but bank and financial offices will be allowed to reopen.
• The Thai Cabinet hold their weekly meeting today and may consider new economic relief measures.
• There is little left on Thailand's economic docket during the remainder of this week, outside of the usual update on foreign reserves, due Friday.