USD/THB slips to 2-month lows ahead of no-confidence debate

Thailands baht depreciated the most since September 11-th against the US dollar, before the no-confidence debate in parliament today against Prime Minister Yingluck Shinawatra and amid continuing anti-government protests.

USD/THB reached a session high at 32.121 at 14:50 GMT, gaining 0.26% for the day. Support was to be found at September 11-th high, 32.170, while resistance was to be encountered at November 25th low, 31.817.

Yesterday, demonstrators broke into a building of the Finance Ministry and promise to continue occupying even more government offices, until they force the Prime Minister Yingluck Shinawatra
to resign. The political protests hindered the ministry from selling all of its bonds yesterday, which were meant to support a rice-purchase program. The Thai complicated political situation forced investors to withdraw a net $209 million from Thai bonds and equities yesterday.

Disawat Tiaowvanich, a currency trader at Bangkok Bank Pcl., cited by Bloomberg, said that: “Foreigners were selling Thai assets because of the political concern, but he bigger concern is that the protests will impact tourism, investment and domestic spending. The bias remains for a weaker baht.”

Meanwhile, S&P and Case-Shiller published data regarding home prices in 20 large cities in the United States. In annual terms, prices continued to rise in September, with the corresponding index gaining 13.29%, compared to 12.82% a month ago. Septembers performance of the index outpaced median estimates of analysts, which pointed a 12.82% increase in prices.

The US survey on consumer confidence for November disappointed, as the index, based on survey results, reached a reading of 70.4, coming short of analysts expectations and lower in comparison with last months value of 71.2.

Elsewhere, the spot rate for the yuan traded in Shanghai was steady at 6.0927, according to China Foreign Exchange Trade System. GBP/USD reached a session high at 1.6189 at 08:15 GMT, gaining 0.20% for the day. EUR/USD reached a session high at 1.3571 at 8:25 GMT, gaining 0.39% on a daily basis. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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