Asia FX advances as dollar retreats ahead of payrolls test
Investing.com -- Thailand’s process to appoint a new prime minister continued over the weekend following the removal of PM Paetongtarn Shinawata by the Constitutional Court for ethical violations related to a leaked phone call with Cambodia’s leader.
The People Party, which holds a majority with 143 seats, will determine the next prime minister. The party has stated it will support any candidate who commits to dissolving parliament within four months and amending the constitution before dissolution.
Bhumjaithai Party leader Anutin Charnvirakul has entered the race, claiming he has secured enough support to form a coalition after agreeing to the People Party’s conditions. Some members of the current coalition have reportedly switched allegiances to join his side.
Meanwhile, the Pau Thai Party has announced it will also comply with the People Party’s conditions. The party warned it might dissolve parliament before the prime ministerial vote if their candidate, Chaikasem Nitisiri, fails to secure a nomination.
Jefferies noted: "News has been fluid, but at this point, our base case is that the process will take longer than the market expects, as there are several significant moving parts."
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