USD/THB Close To Late Jan Lows, CPI On Mon & BoT on Wed Key Focus Points Next Week

USD/THB sits near 35.35 in recent dealings, up from earlier lows of 35.29, but still stronger by 0.30% in baht terms. We aren't too far away from late Jan lows in the pair at 35.27. The 200-day EMA sits slightly lower at 35.23, the simple 200 MA further south at 35.15.

• Like the rest of the region, the baht is enjoying positive spill over from weaker USD levels and the lower yield backdrop in recent sessions. Firmer gold prices will also be a positive, given historical correlations.
• Local equities have climbed today, up over 1% as PM Srettha calls for more steps to boost investor confidence (see this BBG link). Still broader SET moves have lagged the rest of the region. Offshore investors flows were positive yesterday but still sit lower for the week.
• Underwhelming domestic growth conditions is a headwind on this front, which has seen calls for easier BoT policy settings continue in recent weeks.
• Note we get Jan CPI data on Monday, with headline forecast at -0.95% y/y (prior -0.83%), while core is projected steady around 0.60% y/y. The on Wednesday we get the BoT decision. No change is expected by the consensus at this stage (current policy rate at 2.50%).