USD/THB Holding Near Recent Highs, Baht Has Lost More Than 2% Since The  Election

USD/THB sits just below recent highs, last around 34.65. We are around 0.15% weaker in baht terms versus yesterday's close. The currency is underperforming other USD/Asia pairs, which are seeing more downside so far today. This may reflect some carry over from USD strength post yesterday's onshore spot close.

• We are very close to the 200-day EMA (around 34.65), while a break above recent highs around 34.75 could see a move towards 35.00. On the downside the 20-day EMA sits back around 34.30.
• Since the May 14 election, THB is the second worst performer in the Asian FX space, losing 2.4% (MYR is the worst down 2.8%). Offshore investors have sold local equities and bonds this week, -$81.4mn from local equities, -$516.1mn from local bonds.
• Election negotiations look set to continue into a third week, with no clear signs of a near term resolution.
• In terms of next week's calendar, the main focus will be on the BoT decision (out on Wednesday), +25bps is expected (taking the policy rate to 2.00%).