Cabinet Approves Economic Relief Package

Spot USD/THB hovers close to its cycle high of THB32.728, last +0.067 at THB32.667. A rally above the aforementioned cycle high, printed on Jul 9, would open up Apr 14, 2020 high of THB32.792. Conversely, a retreat past Jul 6 low of THB32.067 would give bears some reprieve.

• Thai Cabinet gave a nod to a THB42bn economic aid package for people and businesses affected by the latest round of lockdown regulations. This includes a THB30bn compensation programme for workers, as well as another reduction of utility charges for two months. The latter step will likely exert some downward pressure on consumer-price inflation.
• Top executives of Allnex and Advent arrived in Phuket last weekend, using the opportunity provided by the reopening of the island's borders. They came to seal an EUR4bn M&A deal with PTT, who acquired Allnex, an European chemical firm. PTT CEO noted that "one major reason that allowed us to complete this deal on time was the Phuket Sandbox."
• Nothing much left on the local data docket, with focus on the usual update on foreign reserves, due Friday.