Early USD/THB Dips Unwound, BoT In Focus Later This Week

USD/THB opened on a softer tone, getting close to 35.90, before support emerged. We now sit back near 36.00, down only slightly for the session. Recent highs sit just above 36.30 from last week, while on the downside, recent lows are near 35.63, while the 20-day EMA is ~35.67.

• Some sell-side analysts feel the worst may be behind the baht drop (see this link for more details). Efforts to boost growth by new PM Srettha may start to gain traction, is cited as one potential positive.
• Local equities have recovered some ground. The SET is back to 1520/25, versus recent lows near 1500. Offshore investors aren't turning more constructive tough, at least based off flow data. Last week saw a further -$184.4mn in net outflows (bringing -$531.7mn in outflows in September to date).
• The local data calendar is busy this week, headlined by the BoT decision on Wednesday. The consensus is expecting a +25bps to take the policy rate to 2.50%.
• On Friday we get current account and trade figures for August, before that we should get customs trade data for the same month. The focus is likely to be impact of higher oil prices on the trade position, against the tourism recovery's boost to services exports.
• Also note today kicks off the visa-free entry period for travelers from China (this runs for the next 5 months).