Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
THB
USD/THB gaped higher at the open, the pair got to highs of 35.76, but we sit slightly lower now, last near 35.70. This is still a baht loss of 0.40%. Some of this reflects catch up with USD strength post yesterday's onshore spot close, but still baht losses are larger than those seen elsewhere in the region.
- For USD/THB, the pair is showing its sensitivity to US yield shifts. The chart below plots spot USD/THB against the US-TH 2yr government bond yield differential, up from recent lows post the US CPI beat.
- Levels wise, spot is now just above the 20-day EMA (35.716) and above all other key EMAs. The recent correction lower in the pair saw support hold at the 200-day near 35.38.
- The local data calendar is light until we get into the latter stages of March, when Feb trade data prints. US Secretary of Commerce Raimondo is in Thailand today leading a trade mission.
- The authorities are eyeing a rise in tourism revenue during the upcoming water festival held next month (see this BBG link).
- Local equities remain largely in a sideways range, while portfolio flows have been negative for both equities and bonds in terms of offshore investors in recent sessions.
Fig 1: USD/THB Versus US-TH 2yr Government Bond Yield Differential
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok