DOLLAR-THB : USD/THB round tripped from an...........>

DOLLAR-THB : USD/THB round tripped from an intraday high of THB31.25 yesterday,

finishing just near Tuesday's closing levels. The rate rallied in the lead-up to

the monetary policy decision from the BoT, as analysts were quite evenly split

as to whether policymakers will lower borrowing costs. Indeed, the BoT decided

to reduce its benchmark interest rate by 25bp, bringing it to a record low of

1.00%. The announcement triggered a ~12 pip leg higher in USD/THB.

- The BoT decision was unanimous amid risks to the economy from the Wuhan virus,

but also severe drought conditions & a delayed budget bill. Thailand's

Constitutional Court will rule on the legality of the budget vote on Friday.

- BoT Asst Gov Mallikamas warned that the baht may still be out of line with

fundamentals after last year's surge made it the best performer in Asia.

- USD/THB changes hands at THB31.04 at typing, 10 pips above neutral lvls. It

charted a bullish 50-/100-DMA crossover. A break above the trendline resistance

at THB31.24 would encourage bulls to target the Jan 30 peak/61.8% retracement of

the Apr 25 - Dec 30 sell-off at THB31.28/29. Bears look for a dip below the Feb

4 low of THB30.91, which would expose the 200-DMA at THB30.76.