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USD/THB Back Above 35.00, PM/BoT Governor Meeting In Focus

THB

USD/THB is holding back above 35.00, last near 35.03, which is very close to the 200-day MA. The 200-day EMA sits further north at 35.26. We are close to Monday highs, which came after comments from PM Srettha around scope for central bank rate cuts.

  • The PM and BoT Governor meet around 1pm local time today (0600 GMT) to reportedly discuss key issues, including the digital wallet stimulus plan (BBG). The government may move ahead with this plan in May.
  • Any move to a more dovish bias by the BoT has the potential to undermine THB. The US-TH government bond yield spread is still +200bps, although comfortably down from 2023 highs +300bps). The next BoT meeting is on Feb 7.
  • In the cross asset space, local equities are off recent highs, with offshore investors selling -$96.2mn in local shares so far this week.
  • On the data front, we get Dec consumer confidence tomorrow.

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