USD/THB Tracking Lower, But Remains Above Recent Lows, June Trade Data Due Later

USD/THB sits lower for the session, last at 34.41, which is around 0.30% firmer in baht terms for the session to date. Earlier highs were near 34.55, with baht modestly outperforming the stronger USD/Asia trend elsewhere (most notably USD/CNH) and higher USD levels against the majors (albeit away from best levels).

• There doesn't appear a fundamental catalyst for this modest outperformance, but it does threaten a break to the downside in terms of ranges for the week, although we remain comfortably above lows from last Thursday close to the 33.76 level.
• As we noted earlier, focus is likely to remain on the domestic political front, although prospects for meaningful headway in the near term appear low.
• In the cross asset space, local equities are a touch higher, but are tracking recent ranges. Yesterday saw further modest selling of local equities (-$11mn) but this was down from Monday's session strong outflows. Bond outflows were evident as well but down from the prior session.
• Later on, June customs trade data prints, -7.3% y/y is projected for exports, -7.75% for imports, which, if realized should deliver an improvement in the trade deficit to -$900mn, from -$1849mn.