USD/THB Back Above 35.00, Customs Trade Deficit Wider Than Expected In July

USD/THB has recovered ground as today's session has progressed. The pair last near 35.13, down slightly from session highs of 35.16. Some of this has reflected catch up with broader USD gains in the past 24 hours, while the July customs trade figures showed a wider than expected deficit at near -$2bn, versus -$1.386bn projected (and a modest $58mn surplus in June).

• Export growth was weaker than forecast at -6.2% y/y (-2.8% forecast and -6.4% prior), as were imports -11.10% y/y (-8.75% forecast).
• For USD/THB support appears evident around the simple 50-day MA (~34.87), but we remain well below mid August highs near 35.60.
• Earlier BoT Governor Suthiwartnarueput spoke on the sidelines of the Jackson Hole symposium in the US, stating the central bank is close to where it wants to be on rates, but it is watching the new government's fiscal stance. Cash handouts and other fiscal measures proposed by new PM Srettha could be inflationary the Governor noted, but it's too early to gauge any potential BoT response.
• The Governor reiterated the central bank's stance on THB, stating it doesn't target a specific level of the FX, but it will step in to curb excessive volatility.