USD/THB Bounces But Remains Within Recent Ranges, CPI Data Soon

USD/THB sits just off session highs, last near 35.60, around 1% weaker versus end onshore spot levels from Friday. This reflects catch up with USD gains post the NFP print. Highs for the session rest at 35.67. We are sub late Jan highs at 35.88, but back above all key EMAs. The 200-day coincides with recent lows in the 35.20/25 region.

• These moves keep USD/THB broadly in line with recent ranges. Still baht is the worst performer within EM Asia FX over the past month.
• A flattish equity market trend hasn't helped, while portfolio equity flows are only modestly positive month to date (+$117.8mn), while bond outflows have been seen (-$98.1mn).
• Speculation around a potential shift in the BoT bias to lower rates also likely hasn't helped, amid further government calls for easier policy settings.
• Still, the latest Reuters survey sees no change this week nor for the rest of the 2024 in terms of the policy rate. The next BoT decision is this Wednesday.
• We get Jan CPI figures in a little while. Also out is a University of Thai Chamber of Commerce survey on consumer spending over the coming Chinas LNY period.