USD/THB Firms Post Q2 GDP Miss, But Follow Through Limited, PM Vote Due On Tuesday

USD/THB sits slightly above session lows, the pair last near 35.32. Earlier we touched 35.27, with some USD support emerging post the weaker than expected Q2 GDP print, but there hasn't been much follow through. We are well off highs from last week, which came in near 35.60. Beyond that lies YTD highs just above 35.70 from end June. On the downside the 20-day EMA rests back near 34.98.

• The Q2 GDP miss (0.2% q/q 1.2% forecast and 1.8% y/y versus 3.0% projected) looked to largely owe to a noticeably slowdown in Q2 investment spending. This measure rose just 0.4% y/y, versus 3.1% in Q1. Private consumption growth rose 7.8% y/y from 5.8%.
• Thailand's NESDC nudged down their 2023 GDP project to 2.5-3.0% (from 2.7-3.7% projected in May). The CPI projection was also lowered to 1.7-2.2% (from 2.5-3.5%).
• Focus now shifts to Tuesday's PM vote, with Srettha Thavisin to be put forward as Pheu Thai's candidate. A poll released over the weekend showed surveyed locals don't agree with Pheu Thai's coalition formation (see this link for more details).
• Offshore portfolio outflows continue through last week, -$121.7mn from local equities, -$264.8mn from local bonds.