Virus Clusters Proliferate In Prisons & Construction Camps

Spot USD/THB has continued to creep higher today after breaking out of a descending channel on Monday. The rate last sits +0.025 at THB31.460, after showing at its best levels since Apr 26 this morning. Bulls look for a clean break above that day's high at THB31.493, which would shift focus to Apr 12 high of THB31.575. Bears see the 50-DMA at THB31.088 as their initial target and a fall through there would expose May 10 low of THB31.048.

• Thailand declared 2,473 new Covid-19 cases today, 680 of which came from prisons, which have become major sites of fresh clusters, alongside construction worker camps. The death toll rose by 35, the highest daily increase on record.
• The BoT warned that we may see an increasing number of non-performing loans of businesses from the tourism sector in Q2, as the third wave of coronavirus has delayed reopening plans.
• PM Prayuth chairs the weekly cabinet meeting today. Later in the week, Thailand's customs trade data & weekly update on foreign reserves both hit the wires on Friday.