USD/THB Uptrend Persists Amid Equity Weakness/Portfolio Outflows

USD/THB continues to track higher. The pair up a further 0.25% so far today, around the 34.75 level, with baht erasing its YTD gains in recent sessions. The 200-day EMA is not too far above current levels (34.85), beyond that rests the 35.00 figure level. Broader USD sentiment has clearly turned around, although the THB NEER (J.P. Morgan Index) has lost 3.7% from late Jan highs, but remains comfortably above July 2022 lows.

• Onshore equities continue to weaken, down a further 0.70% so far today, with the SET index also eroding YTD gains. Offshore investors have sold nearly $1bn of local equities in Feb to date, with nearly half the outflows coming in the past week.
• Outflows from debt markets also persist, over $1.1bn for Feb to date.
• Later today, FX reserves (week ending Feb 17) are due, while early next week customs trade data is due for Jan. The goods trade deficit is expected to persist. Manufacturing production and the overall BoP balance is due on Tuesday.