USD/THB Up From Monday Lows As Uncertainty Continues Over New Government

USD/THB sits just below session highs. The pair last 33.85/90 (33.935 was the earlier high). Yesterday lows came in between the 33.70/75 region. Recent highs rest near 34.00.

• Sell-side analysts were mostly positive in the aftermath of the result, albeit waiting to see how government is formed and who is the new Prime Minister. A contested election result and or significant delay in announcing the new PM will be seen as negative for Thailand related assets.
• Local newswires reported that some senators oppose Move Forward PM candidate Pita due to question mark around his loyalty (see this link).
• Until a clearer picture emerges, we may see USD/THB somewhat range bound. Local equities are close to flat today, after a 1.28% drop yesterday. Offshore investors were modest sellers -$15.4mn of local equities, but inflows continued into bonds.
• The local data calendar is quiet until the end of the week.