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Baht Weakens Despite Solid Equity Inflows Last Week, Plenty Of Data Signals Ahead

THB

Spot USD/THB started the new week on a firmer footing and last deals +0.132 at THB38.027. Topside focus falls on recent cyclical high of THB38.465. Conversely, a dip through Oct 27 low of THB37.632 would open up the 50-DMA/Oct 6 low at THB37.168/37.125.

  • Foreign investors bought a net $75.81mn in Thai stocks last Friday, the sixth consecutive net daily inflow and the largest one since Aug 31. The SET index crept higher last Friday, printing fresh monthly highs. Note that the BoT said it will discontinue its corporate bond stabilisation fund at the turn of the year after domestic company earnings improved.
  • The local data dump today includes m'fing production (04:00 GMT/11:00 ICT), BoP current account balance (07:00 GMT/14:00 ICT) and trade balance (07:30 GMT/14:30 ICT).
  • Industrial output growth is expected to have slowed to +6.55% Y/Y in September from +14.52% prior, while BoP current account deficit may have narrowed to $1.275bn from $3.500bn.
  • Data releases will remain in high gear later this week, with Business Sentiment Index coming up tomorrow & CPI report due Friday.

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