Baht Receives Fillip From GDP Beat

A strong Q4 GDP outturn has inspired a round of THB purchases, amplifying the impact of risk-on reaction to the news that U.S. & Russian leaders might hold a security summit. The Thai economy grew 1.9% Y/Y in the final quarter of 2022, smashing the median estimate of +0.8% and boosting full-year growth to +1.6%.

• The government kept its 2022 GDP growth estimate unchanged at +3.5%-4.5% Y/Y, with consumer prices expected to rise 1.5%-2.5% Y/Y this year.
• Looking ahead, the Customs Dept will publish monthly trade data on Wednesday, with trade deficit expected to widen at the margin.
• Meanwhile, Thailand reported 18,883 new Covid-19 infections and 32 fatalities today, the highest daily death count since Dec 28.
• Spot USD/THB trades -0.048 at THB32.122, with bears looking for a fall through Jul 6, 2021 low of THB32.067 before taking aim at Jun 25, 2021 low of THB31.740. Conversely, a rebound above Nov 18, 2021 low of THB32.565, a recent breakout level, would bring bulls some reprieve.