Baht Struggles On New Covid Containment Measures

Spot USD/THB has edged higher and last trades +0.010 at THB33.665, testing the bear channel top at THB33.718, as the baht lags all its peers from the Asia EM basket. A clean break here would open up Dec 22 high of THB33.835, followed by Dec 3/Oct 6 highs of THB33.990. Bears need a pullback under Jan 5 low/channel floor at THB33.160/33.112 to gain some momentum.

• The containment measures implemented by the government in response to an upsurge in Omicron cases have clouded the outlook for Thailand's tourism industry, inflicting wounds on the baht.
• The national Covid-19 task force indefinitely suspended a quarantine-free travel scheme for vaccinated visitors and banned alcohol consumption at restaurants in high-risk non-tourist areas (it will be subject to a curfew in tourist areas).
• FinMin Arkhom speaks at Asian Financial Forum as we type. He pointed to the need to balance the economy and fight Covid.
• The BoT will hold their quarterly analyst meeting at the top of the hour.
• Elsewhere, the University of the Thai Chamber of Commerce will release their consumer confidence gauge on Thursday.