Cabinet Approves Relief Measures, Local Data Eyed

Spot USD/THB remains on a tear. Building on yesterday's upswing, the rate gapped higher at the reopen this morning and last sits +0.055 at THB32.090, near its best levels since mid-2020.

• Thailand's cabinet approved in principle a programme to compensate workers and businesses in Bangkok affected by measures implemented to arrest the spread of Covid-19 infections, with details expected to be submitted next week. In addition, the gov't approved an extension to debt relief measures for the customers of seven state-owned financial institutions.
• Separately, Covid-19 task force chief suggested that restrictions at some construction sites in Bangkok might be eased to prevent engineering problems, which could stem from a sudden halt to construction operations.
• The BoT said Tuesday that it will ease FX rules for individuals and businesses, in an attempt to tackle baht volatility. Officials are planning to tweak FX rules in 4Q2021.
• The Tourism Council of Thailand said that as many as 3mn tourists could visit the country this year, under their best-case scenario. The base-case scenario assumes 1.4mn foreign arrivals. Meanwhile, the Tourism Confidence Index dropped to a new low in 2Q2021.
• PM Prayuth will chair the meeting of the Board of Investment today, with a press briefing expected at 1630ICT/1030BST.
• All eyes are on local economic data today, namely May BoP current account balance & trade balance. Later this week, focus turns to Thursday's Markit M'fing PMI & Business Sentiment.
• A break above the 76.4% retracement of the Apr 2, 2020 - Dec 18, 2020 slide at THB32.370 would please bulls, while bears keep an eye on Jun 25 low of THB31.740, followed by the 50-DMA at THB31.364.