August 15, 2024 01:11 GMT
USD/THB Back Above 35.00 As Thai PM Removed, Corrects From Oversold Condition
THB
USD/THB is back to 35.10/15 in early Thursday dealings, around 0.60% weaker in baht terms. We are above intra-session lows from Wednesday (34.84), which was lows in the pair back to January of this year.
- Fresh domestic political turmoil is likely weighing on Thailand related assets. Late yesterday PM Srettha was removed from office by the constitutional court. He was deemed to have breached ethical norms following an earlier appointment.
- Members of the Thai House of Representatives will convene on Friday 16 August to elect a new Prime Minister.
- For USD/THB near term focus is likely to rest on portfolio flows and domestic equity market trends. Fallout from Srettha's removal and its impact on economic confidence will be multi week focus points.
- Yesterday saw -$243.6mn in outflows form local bond investors, while equity flows were a touch higher.
- For USD/THB we are coming away from oversold conditions. August 7 highs are back just above 35.70. The 20-day EMA is back around 35.68, so close to this level, while other key EMAs are above 36.00.
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