Baht Rebounds From Two Month Lows

USD/THB has moved away from recent highs. The pair slipped to a low just under 34.45, before stabilizing somewhat, last around 34.50. Yesterday's highs came in just above 34.70. Baht gains so far in the session are around 0.50%.

• There don't appear any fresh catalysts for today's pull back. In terms of the local political backdrop, Move Forward have stated they will tone down its push to reform the monarchy to get the support they need in parliament to get Pita chosen as PM. Current PM Prayut Chan-o-cha also said assured the nation of a smooth transition from the caretaker government to the new government (see this link).
• Yesterday's highs in USD/THB were +3.3% above early May lows, with the currency having lost ~2% since the election. These levels also coincided with highs back to the first half of March this year. The 50-day MA for the pair sits back under 34.28, which may need to be breached to turn the tide more favorably for the currency.
• In the cross asset space, Thai equities continues to recover from the recent test sub the 1500 level, although the index is only up modestly today (+0.15%).
• Outflows have still been evident from both local equities (-$111.4mn yesterday) and local bonds (-$110.7mn)