USD/THB has fallen sharply in the first part of Friday trade, the pair down nearly 0.9% to 35.15. This is lows in the pair back to early September. We are now sub all key EMAs, with the 200-day sitting back near 35.30. A break sub 35.00 could see late August lows at 34.835 targeted.

• Baht looks to be broadly following dollar trends, in line with the pullback in US yields. However, baht has outperformed over the past week (THB +2%, BBDXY -1.25%).
• The sharp pull back in oil prices is likely being seen as a positive for THB. The Citi THB terms of trade index is at multi month highs, albeit still in negative territory.
• Baht gains are outperforming local equity trends, while offshore investor flows have been modestly positive this past week (+$52.7mn). Some offset has come from bond outflows (-$37.2mn).