Free Trial

USD/THB To Fresh Multi-Week Highs As Onshore Markets Return

THB

USD/THB has gaped higher as onshore markets return after yesterday's holiday. The pair was last in the 35.65/70 region, fresh highs back to mid Nov. We are above all key EMAs and have pushed through the simple 100-day MA (35.535). Note the simple 50-day MA rests higher at 35.90.

  • Baht weakness looks to be stretching beyond what is implied by a slightly firmer USD index backdrop. Likewise, when we look at USD/THB versus US-TH yield differentials.
  • Local equities remain underperforming, with the SET near recent cyclical lows, which continues to imply higher USD/THB levels. Offshore investors have remained net sellers of local equities so far this month, -$142.8, with the bulk of the outflows coming last week.
  • The local data calendar is empty this week. Today we do have the exporter council talking about the export outlook in around 15mins.
  • There is also a local cabinet meeting just before this, then at 1pm local time PM Srettha will chair a State Fiscal Policy Committee meeting.

To read the full story

Close

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.