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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
THB
Spot USD/THB deals +0.235 at THB37.810 after Wednesday's monetary policy decision from the Fed, which was accompanying by mixed messaging, although Chair Powell ultimately reaffirmed hawkish bias and pointed to higher terminal rate expectations.
- Technically, the rate is forming a descending channel, drawn off Oct 20 high. A break above the ceiling of that channel (THB37.900) would shift focus to recent cyclical highs (THB38.465). Bears look for a dip through channel floor/50-DMA at THB37.290/37.285 before targeting Oct 6 low of THB37.125.
- The baht is the worst performer in emerging Asia, losing 0.62% versus the greenback so far. Its outsized reaction to another 75bp rate hike from the Fed could be attributed to the BoT's status as a latecomer to the global tightening campaign and its commitment to raising interest rates in a gradual manner.
- Today's drop reduces the baht's since the end of play last Friday, although it remains the best performer in emerging Asia on a weekly basis. Pre-Fed strength was supported by a decent recovery in foreign equity inflows and hopes for quicker recovery of the local tourism industry.
- Net equity flows subsided Wednesday, albeit they stayed positive, just. Foreign investors snapped up just $0.70mn in Thai stocks, with daily flows faltering below their 15-DMA. The SET index rejected resistance from its 200-DMA before trimming gains.
- PM Prayuth speaks at the Thailand-China Investment Forum this morning. FinMin Arkhom will deliver an address at Export-Import Bank fair later in the day.
Fig. 1: Thailand Stock Exchange Foreign Investors Net Flows ($mn)
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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