Baht Steadies After Surge Seen Amid Improving Covid-19 Situation

Spot USD/THB has stabilised after a dynamic sell-off seen yesterday, which allowed the pair to chart a mini-triple top pattern. The rate last trades +0.045 at THB32.975, with bears looking for a slide through Jul 29/20 lows of THB32.820/32.780, towards the 50-DMA at THB32.575. On the topside, a rally above Aug 10 high of THB33.490 is needed to put bulls back in the driving seat.

• Thailand's Health Ministry will propose to relax curbs on restaurants and allow dine-in services with capacity constraints as the current wave of Covid-19 eases. The proposal will be submitted to the Covid-19 task force on Friday.
• This comes after Thai health experts said that the local Covid-19 outbreak is past its peak and the country will now focus on "learning to live with" the virus, which may include letting more vaccinated tourists into the country from next month.
• Worth noting that Moody's reaffirmed Thailand's credit rating at Baa1 with a stable outlook, which lent some support to the baht Tuesday, along aforementioned positive musings on the local Covid-19 situation.
• FinMin Arkhom & BoT Gov Sethaput are set to appear at a seminar hosted by the Stock Exchange of Thailand at 0930ICT/0330BST. Around the same time, the National Economic & Social Development Board will hold a briefing on Q2 social situation, while PM Prayuth will chair a meeting on SMEs.
• Elsewhere, the local economic docket for the remainder of this week is sparse, with the usual update on foreign reserves coming up on Friday.