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Phuket Sandbox Under The Microscope

THB

Spot USD/THB pushed higher after the re-open and last sits +0.090 at PHP32.135, printing best levels since May 13, 2020. Overnight greenback dynamics seems to be the main driving force here. Bulls look for a further rally above the 76.4% retracement of the 2020 sell-off at THB32.370. On the downside, focus falls on Jun 25 low of THB31.740 and a break here would open up the 50-DMA at THB31.399.

  • The latest MNI Insight piece noted that the BoT sees limited policy options amid THB weakening and prefers to rely on other means to support the economy.
  • PM Prayuth said that Thailand has to accept the risks associated with launching the Phuket sandbox. The national Covid-19 task force warned that if the average number of infections on the island tops 15 per 100,000 people in one week, the project can be delayed or cancelled.
  • The BoT are set to release weekly foreign reserves data today. Meanwhile, the release of monthly CPI data by the Ministry of Commerce, due Monday, headlines the local docket next week.

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