Baht Slightly Firmer Amid Optimism On Tourism Recovery

Selling pressure has hit spot USD/THB, with overnight recovery in risk sentiment lending support to the Asia EM space. The pair last deals -0.102 at THB36.178, with bears looking for a dive through Aug 1 low of THB35.975 towards the 50-DMA at THB35.456. Bullish focus falls on Jul 21 high of THB36.945.

• Thai officials continued to play up recovery prospects for the local tourism industry. Gov't spokesman said the authorities will roll out fresh supportive measures through 2023 to attract more overseas visitors.
• The tripartite committee that sets minimum wages failed to reach consensus due to dramatic differences in proposals submitted by provincial sub-committees, the Bangkok Post reports. An unnamed source noted that the committee looks to finalise the new wage rates by next month and have them implemented by the year-end.
• Participants look ahead to the release of Thai CPI data for the month of July. Headline inflation is expected to have quickened to +8.00% Y/Y from +7.66% prior, according to Bloomberg consensus.
• Note that the BoT will convene next week and may finally fire the starting pistol on the tightening cycle. Ahead of the MPC meeting, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said the banking sector will likely delay passing the rate hike on to their clients.