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USD/THB Climbs On The Back Of Broader Risk Aversion


Spot USD/THB re-opened higher today, as broader risk aversion pushed the cross higher. Yesterday's disappointing manufacturing data out of Thailand has provided another headwind for the baht.

  • As a reminder, M'fing Production Index fell 2.44% Y/Y in Dec, while consensus called for a more modest decline of 0.15%.
  • Thailand's Tourism & Sport Ministry said yesterday that it is looking to hike taxes for tourists entering the country.
  • Spokesman for Thailand's Centre for Covid-19 Situation Administration suggested that the country will relax restrictions in some areas. Provincial communicable disease panel in Ayutthaya decided to to allow certain types of business to reopen from Feb 1.
  • The rate last sits at THB30.02, a touch higher on the day. A break above the 50-DMA/Jan 18 high at THB30.10/13 would give bulls a green light for targeting Jan 12 high of THB30.19. On the downside, losses past trendline support at THB29.95 would bring Dec 18, 2020 low of THB29.76 into play.
  • Implied 1-month USD/THB volatility bounced off one-year low of 4.7125 today, last sits at 4.8975.
  • Looking ahead, Thailand reports BoP data for the month of Dec & weekly foreign reserves data this Friday.

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