Extending Losses

Baht weakness has deepened as initial rounds of local data crossed the wires, undershooting market expectations.

• Thailand's trade deficit was $1.529bn in June versus BBG median estimate of $1.316bn, according to data from the Customs Department. The wider-than-expected shortfall was underpinned by higher prices of energy commodities.
• Manufacturing output shrank 0.08% Y/Y in June, defying expectations of a 0.50% expansion. On a positive note, the prior reading was revised to -1.98% from -2.11%.
• Thai stocks are holding up well, with the benchmark Bangkok SET Index up 0.50% on the day.
• Spot USD/THB last +0.178 at THB36.865, slightly off the THB36.885 session high. Nothing to add on the technical picture outlined in our earlier THB bullet.
• Reminder that June BoP data will be published later today, before the start of a public holiday in Thailand.