USD/THB holds Near 34.50, Strong Equity Outflows On Monday

Spot USD/THB finished away from Monday session highs, closing out the session at 34.46. Earlier highs at 34.56, while on the downside we didn't see any moves sub the 34.40 level. A cluster of EMAs remain higher between 34.60 and 34.70. Recent lows rest under 34.00.

• The focus is likely to remain on the local political backdrop. There is some uncertainty as to whether Thursday's PM vote will go ahead. The Office of the Ombudsman is planning to challenge parliament's denial of Pita's PM bid (see this link and here as well for more details).
• The Pheu Thai Party is holding a meeting at 2pm local time today with its coalition partners to discuss progress on forming a new government.
• Thailand equities finished down modestly yesterday, the SET off 0.36%, while offshore investors sold -$126mn of local shares. This is the third consecutive session of outflows and the largest single daily outflow since mid-May. July net outflows now sit at -$369.4mn. Bond outflows were also evident yesterday (-$91mn).
• Note also BoT Deputy Governor Ronnadol Numnonda speaks today at an ESG seminar (9:30am local time), while the Federation of Thai Industries releases car sales data for June at 10:30am local time.