Consumer Confidence Back To Late 2020 Highs, But Equity Headwinds Weigh

USD/THB has tracked slightly higher in the first part of trade today. We are around 33.54 currently, +0.20% for the session. This leaves us within recent ranges for the pair.

• Signals from the equity space remain a headwind, with the SET off a further 0.50% today. The index is back close to its simple 50-day MA (1658.16). Yesterday, offshore investors sold a further $118.6mn of local equities, continuing the recent outflow trend.
• This is likely preventing the baht from seeing positive spillover from the stronger tone evident elsewhere in the FX space (more so in the G10 for AUD & NZD).
• On the data front, consumer confidence for Jan rose to 51.7 from 49.7. This is highs back to late 2020. For the economic situation, confidence was at 46.0 versus 43.9 prior.
• Elsewhere the government may borrow less year to finance the deficit owing to buoyant tax collection. Debt to GDP is still expected to be above 60% though for the next 5 years.