HALISTER1: Smaller Jump in Thai CPI May Push USD/THB Above 21-DMA: Analysis

Smaller Jump in Thai CPI May Push USD/THB Above 21-DMA: Analysis

(Bloomberg) -- Smaller-than-expected increase in Aug. inflation rate could trigger an acceleration in USD/THB’s rally, Bloomberg strategist Andrew Robinson writes.
  • Consumer prices probably rose 0.43% y/y following 0.10% increase in July, median est. in Bloomberg survey shows; ests. range from +0.10% to +0.90%; data due 10:30am local time tomorrow
    • Would be first increase in CPI in three months
  • Inflation likely picked up on higher domestic retail fuel prices and partly a recovery in domestic spending, Standard Chartered writes in note today; forecasts +0.41%
  • USD/THB could overcome 21-DMA resistance at 34.728 and advance to 50-DMA of 34.925 in near term
    • Slow stochastics and 14-day RSI both rising, which are bullish signals
  • USD/THB up 0.2% at 34.633; FX pair hasn’t traded above 50- DMA since June 29
  • NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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