USD/THB Trending Higher Towards 35.00, Election Uncertainty Remains A Headwind

USD/THB sits at fresh multi-month highs in early dealings today. The pair was last in the 34.85/90 region, +0.60% above closing levels from the end of last week. These levels last prevailed in the first half of March. While the firmer USD backdrop hasn't helped, election uncertainty continues to weigh.

• Round figure resistance may be evident at 35.00, while the simple 200-day MA comes in at 35.23, which is also close to earlier YTD highs. On the downside, the simple 50-day MA is back at 34.26.
• A Suan Dusit Poll highlighted that the majority of voters are concerned the next PM will not come from the Move Forward Party (see this link). The Bangkok Post also reports rifts within the coalition over the internal speaker post (see this link).
• Uncertainty is weighing on investor flows, with $102.7mn in equity outflows last Friday (-$351.8mn for the week). Friday bond flows were more modest at -$15mn, but for the week -$531.1mn.
• On the data front, we get customs trade figures tomorrow, but the main focus will be on Wednesday's BoT decision, +25bps expected.
• China tourist arrivals hit 1 million for the January-to-Mid May period, which compares with 274k for the whole of last year. Note in 2019, 11 million China tourists visited the country.