Baht Underperforms As Election Uncertainty Lingers

USD/THB continues to track higher, the pair last near 34.20. This is 0.70% weaker in baht terms versus yesterday's close. Technically, we are above the 20 and 50-day EMAs (34.036 and 34.17 respectively). The 200-day EMA sits just under 34.40, and we haven't been above this level since the first half of March.

• A firmer USD backdrop and higher USD/CNH levels are weighing, but so too is election uncertainty. Move Forward still needs to gain support of the Senate, with its PM candidate not drawing a uniformly positive response at this stage.
• Onshore equities continue to correct lower, the SET down another 0.75% so far today. The index, last under 1530, is not too far away from early May lows near 1500.
• Offshore investors -$32.6mn of local equities yesterday, although bond inflations have remained strong, +$341.1mn yesterday.