Fresh Election Uncertainty Weighs On THB

USD/THB has firmed on headlines that the Thai poll body will refer PM candidate Pita's election eligibility to the constitutional court, according to local media reports (Matichon newspaper). This follows earlier reports of Pita owning media shares, which may have breached election rules.

• USD/THB was at 34.65 earlier in the session but now sits back at 34.84 (highs of 34.855), having gained around 15pips since the headlines crossed. This leaves baht as the only EM Asia weaker for the session amid broad USD losses elsewhere.
• This comes ahead of tomorrow's gathering of parliament to vote for a new Prime Minister. These latest headlines clearly cast doubt on how tomorrow's vote will unfold and Pita's candidacy more broadly. Note that even if Pita fails to secure enough votes to become PM, he can still stand again at the next parliament sitting, which is expected on July 19.
• Current caretaker PM Prayuth Chan-Ocha will quit politics after losing the most recent election it was reported yesterday.