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THB: USD/THB Close To 20-day EMA Resistance Test

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USD/THB continues to correct higher, the pair testing above 33.00 in early Thursday trade. We are around 0.85% weaker in spot terms so far today. Catch up to broader USD gains, particularly against the yen, is a clear THB headwind. 

  • This leaves the pair not too far from its 20-day EMA, just near the 33.11. As the chart below highlights, the pair hasn't been above this resistance point since early July of this year.
  • Outside of broader USD shifts, we have seen selling of local equities and bonds by offshore investors so far this week. Yesterday was a chunky -$163 in outflows from local equities. The local SET index finished lower yesterday but is still close to recent highs.
  • This of course comes after the BoT warning around FX strength weighing on exports/tourism revenues at the start of the week. Moving away from oversold conditions from technical standpoint may also be encouraging some exiting of short USD/THB positions.
  • Locally today we will hear from the Finance Minister and the BoT Governor at a Data event, per BBG. The data calendar has FX reverses tomorrow, but focus will be on next week's CPI print (out Monday). 

Fig 1: USD/THB Not Far From 20-day EMA Resistance Test 

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USD/THB continues to correct higher, the pair testing above 33.00 in early Thursday trade. We are around 0.85% weaker in spot terms so far today. Catch up to broader USD gains, particularly against the yen, is a clear THB headwind. 

  • This leaves the pair not too far from its 20-day EMA, just near the 33.11. As the chart below highlights, the pair hasn't been above this resistance point since early July of this year.
  • Outside of broader USD shifts, we have seen selling of local equities and bonds by offshore investors so far this week. Yesterday was a chunky -$163 in outflows from local equities. The local SET index finished lower yesterday but is still close to recent highs.
  • This of course comes after the BoT warning around FX strength weighing on exports/tourism revenues at the start of the week. Moving away from oversold conditions from technical standpoint may also be encouraging some exiting of short USD/THB positions.
  • Locally today we will hear from the Finance Minister and the BoT Governor at a Data event, per BBG. The data calendar has FX reverses tomorrow, but focus will be on next week's CPI print (out Monday). 

Fig 1: USD/THB Not Far From 20-day EMA Resistance Test 

Keep reading...Show less