Oct 6 (Reuters) – The Thai baht’s resurgence this week has wrong-footed bears focused on domestic political unrest and weak prospects for its tourism-reliant economy , and further gains are likely as a new finance minister takes the helm.
An Oct 1 Reuters FX positioning poll showed investors turning bearish on the THB , but the currency has rallied 1% versus the USD since Friday, and could appreciate further. USD/THB broke below its 200-day moving average and Ichimoku cloud support zone on Monday. The next sell signal would be entry into the Bollinger downtrend channel at 31.20.
The move was driven by a bounce in risk assets on news of U.S. President Trump being discharged from hospital after receiving COVID-19 treatment . But the appointment of Thailand’s new finance minister also mattered .
Following the sudden resignation of his predecessor on Sept 1, the selection of transport minister and