Thailand’s Stability of Political Instability Expected By Markets

The minimal market reaction from Thailand’s military coup is not what might be expected in a such a situation. Martial law usually make investors and businesses very nervous.

Yet, the Thai bhat has not moved by much versus the US dollar and the stock market is down some 2%. Asian markets have risen to about a five-month high despite the turmoil in Thailand. But, it is early days.

The paradoxical outcome is due in part to the frequency of coups in the country. This is the 12th coup d’état since the absolute monarchy was replaced in the 1930s, and there have been seven other attempts. In short, the military is a constant presence in Thailand.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza