BoT Releases Minutes From December Meeting, Says THB Will Face Challenges

The pullback in USD/THB seen after the rejection of 23.6% retracement of the Sep 28 - Dec 18 sell-off has ground to a halt, with the pair posting gains yesterday and extending them today. The rate last sits at THB29.95, 1 pips better off on the day.

• The BoT released minutes from its Dec 23 MonPol meeting this morning. The MPC said that the new FX exosystem ought to be expedited to address structural problems in the FX market. Policymakers said that the baht would face challenges going forward and attributed the recent THB depreciation to the new wave of coronavirus in Thailand, which could result in further FX volatility.
• Tuesday saw the Thai cabinet give a nod to a FY2022 draft budget outlay of THB3.1tn. Elsewhere, the BoT allowed greater flexibility for non-resident companies to make FX transactions against THB.
• A fall through yesterday's trough at THB29.84 would shift bearish focus to THB29.76, the low print of Dec 18 & worst level since 2013. Bulls need a clearance of Dec 28 high of THB30.17 before setting their sights on Dec 24 high of THB30.24.
• Thailand's consumer confidence should hit the wires at some point this week. Elsewhere, the BoT publishes its quarterly MonPol report today.