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Free AccessUSD/THB Gaps Lower, But Underperforms Broader Dollar Weakness Amid Election Uncertainty
The early impetus for USD/THB is to the downside. After closing onshore yesterday at 34.915, we were last around 34.65 (-0.75% for the session so far). A good chunk of this is likely to reflect broader USD weakness post the US CPI miss in Wednesday NY trade.
- For USD/THB we slightly below lows that prevailed yesterday before headlines crossed that PM candidate Pita's election eligibility was being taken to the Constitutional Court. As we noted earlier, today's PM vote will be the main focus point for Thailand watchers.
- Whilst USD/THB is tracking lower, election uncertainty is driving some underperformance versus broader USD trends. This time yesterday the BBDXY was around 0.80% higher, yet USD/THB is tracking at similar levels.
- Technically, USD/THB is sub all key EMAs, albeit just, with the 100-day near by at 34.675. A clean break of the level could pave the way for a move to mid June lows around 34.50.
- Also note today we have consumer confidence on tap.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.