26 May 2014
Asia EM Express: Thai baht and stocks continue decline following the coup
FXStreet (Łódź) - The political turmoil has been aggravating in Thailand, following the declaration of martial law at the beginning of last week and the non-violent coup on Thursday. General Prayuth Chan-ocha, who took over power in the country, dissolved the Senate on Sunday and targeted politicians and journalists with a wave of arrests.
According to Michael Every from Rabobank: “Undermining any optimists’ hopes that the junta would at least appoint capable civilian technocrats to run the country, all ministries are to be managed by just eight senior military officers with no relevant experience.”
“Despite the ‘red shirt’ opposition being rendered leaderless by a wave of arrests, sporadic anti-junta protests are still popping up across Bangkok: the very real risk is that violence will soon result.”
General Prayuth Chan-ocha said in a speech on Monday that the junta “will set up new organizations to reform every aspect that causes problems and conflicts.” He promised to begin with releasing delayed payments to rice farmers, but hasn't given any more details or information on the possible date of new elections.
Thailand’s SET Index fell 0.5% to 1389.35, extending its decline since last Thursday to 1.1%. The baht weakened 0.1% against the dollar to 32.583.
Economic data
Taiwanese GDP data, published on Friday showed a pickup in growth to 3.14% in Q1, following a 2.88% rise the previous quarter and above consensus of +3%.
On Monday the Singapore Department of Statistics informed that on a monthly basis Industrial Production dropped 4.7% in April, compared with the 6% increase in March, and considerably below forecasts of a 2.9% fall. On an annual basis Industrial Production grew 4.6%, down from 12.1% and below expectations of a 6.5% rise
Technicals
At the moment of writing USD/THB was little changed at 32.56.
On Friday the USD/THB daily FXStreet Trend Index was slightly bearish and the OB/OS Index was neutral. RSI stood at 57 at the last close, and has slid to 43 so far today.
According to Michael Every from Rabobank: “Undermining any optimists’ hopes that the junta would at least appoint capable civilian technocrats to run the country, all ministries are to be managed by just eight senior military officers with no relevant experience.”
“Despite the ‘red shirt’ opposition being rendered leaderless by a wave of arrests, sporadic anti-junta protests are still popping up across Bangkok: the very real risk is that violence will soon result.”
General Prayuth Chan-ocha said in a speech on Monday that the junta “will set up new organizations to reform every aspect that causes problems and conflicts.” He promised to begin with releasing delayed payments to rice farmers, but hasn't given any more details or information on the possible date of new elections.
Thailand’s SET Index fell 0.5% to 1389.35, extending its decline since last Thursday to 1.1%. The baht weakened 0.1% against the dollar to 32.583.
Economic data
Taiwanese GDP data, published on Friday showed a pickup in growth to 3.14% in Q1, following a 2.88% rise the previous quarter and above consensus of +3%.
On Monday the Singapore Department of Statistics informed that on a monthly basis Industrial Production dropped 4.7% in April, compared with the 6% increase in March, and considerably below forecasts of a 2.9% fall. On an annual basis Industrial Production grew 4.6%, down from 12.1% and below expectations of a 6.5% rise
Technicals
At the moment of writing USD/THB was little changed at 32.56.
On Friday the USD/THB daily FXStreet Trend Index was slightly bearish and the OB/OS Index was neutral. RSI stood at 57 at the last close, and has slid to 43 so far today.