THB: USD/THB Close To 50-day EMA Resistance
USD/THB was last in the 32.10/15 region, up around 0.45% from end Wednesday levels. Session highs rest at 32.182, not too far from the 50-day EMA, which sits near 32.22. Moves above this resistance zone have been used as selling opportunities in the pair back to June of this year, see the chart below. Today's USD/THB move is also driving a further wedge between USD/THB levels and spot gold prices.
- From late yesterday, via BBG: "Fitch Ratings downgraded Thailand’s credit rating outlook to negative from stable, citing rising risks to public finances from prolonged political uncertainty and weakening growth prospects."
- Cross asset sentiment hasn't been severely impacted though. Local equities are up from recent lows, while Thailand is near +40bps, which is still close to the bottom end of 2025 ranges. Still, the news is likely adding some caution around THB, particularly with broader USD sentiment recovering and the authorities working against fresh baht outperformance.
- The local data calendar is empty today.
Fig 1: USD/THB Approaching 50-day EMA Resistance
Source: Bloomberg Finance L.P./MNI
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