Free Trial
USDCAD TECHS

Takes Out 20-, 50-Day EMAs

US TSYS

Weak Global PMIs

AUDUSD TECHS

Pierces 50-Day EMA

US TSYS

Eurodollar/SOFR, Tsy Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Baht Underperforms As China's Commitment To Zero-COVID Bodes Ill For Tourism

THB

Overnight demand for the U.S. dollar has generated a tailwind for spot USD/THB early doors. The rate has now unwound its losses posted on Tuesday in reaction to the news re: China loosening border controls. It last changes hands +0.120 at THB35.320.

  • Note that Chinese President Xi yesterday lauded his flagship dynamic Zero-COVID strategy as most "economic and effective" for China and vowed to stay the course. His hard-line stance bodes ill for the recovery of Thailand's tourism industry, China being the largest pre-pandemic contributor of foreign visitors.
  • From a technical perspective, topside focus falls on THB35.573, which limited gains on Jun 24. A breach of that cyclical high would confirm the strength of underlying uptrend, shifting focus to Jan 9, 2017 high of THB35.799. Bears need a drop under Jun 16 low of THB34.830 before taking aim at the 50-DMA at THB34.558.
  • The World Bank kept its +2.9% Y/Y forecast for Thai 2022 GDP growth unchanged from the April projection but warned against the country's exposure to elevated oil prices and supply chain disruptions. The World Bank will hold a webinar on its Thailand Economic Monitor later today.
  • Thailand's manufacturing production unexpectedly shrank in May. The -2.11% Y/Y print not only missed the median estimate (+1.55%) but was also accompanied by a downward revision to the previous reading. Only one of the 10 economists surveyed by Bloomberg expected contraction.
  • BoP data are set to steal the limelight today. Consensus forecast for BoP current account balance is -$3.0bn in a Bloomberg survey. We are also awaiting the release of customs trade data in the coming days.
261 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Overnight demand for the U.S. dollar has generated a tailwind for spot USD/THB early doors. The rate has now unwound its losses posted on Tuesday in reaction to the news re: China loosening border controls. It last changes hands +0.120 at THB35.320.

  • Note that Chinese President Xi yesterday lauded his flagship dynamic Zero-COVID strategy as most "economic and effective" for China and vowed to stay the course. His hard-line stance bodes ill for the recovery of Thailand's tourism industry, China being the largest pre-pandemic contributor of foreign visitors.
  • From a technical perspective, topside focus falls on THB35.573, which limited gains on Jun 24. A breach of that cyclical high would confirm the strength of underlying uptrend, shifting focus to Jan 9, 2017 high of THB35.799. Bears need a drop under Jun 16 low of THB34.830 before taking aim at the 50-DMA at THB34.558.
  • The World Bank kept its +2.9% Y/Y forecast for Thai 2022 GDP growth unchanged from the April projection but warned against the country's exposure to elevated oil prices and supply chain disruptions. The World Bank will hold a webinar on its Thailand Economic Monitor later today.
  • Thailand's manufacturing production unexpectedly shrank in May. The -2.11% Y/Y print not only missed the median estimate (+1.55%) but was also accompanied by a downward revision to the previous reading. Only one of the 10 economists surveyed by Bloomberg expected contraction.
  • BoP data are set to steal the limelight today. Consensus forecast for BoP current account balance is -$3.0bn in a Bloomberg survey. We are also awaiting the release of customs trade data in the coming days.