KBANK expects the baht range next week to be 35.30-36.15, while monitoring the results of the Fed and Bank of England meeting: InfoQuest

Kasikorn Bank (KBANK) expects the baht to move next week (Jan 29-Feb 2) at 35.30-36.15 baht/$ compared to the market close on Friday, January 26 at 35.58 baht/$, with important factors to follow including foreign capital signals Results Federal Reserve meeting (January 30-31) and December economic and payroll report. 2023 Bank of Thailand (BoT)

Important US economic numbers include the November Home Price Index. December Job Openings and Labor Turnover (JOLTS), ISM/PMI Manufacturing Index, and Consumer Confidence Index Private Sector Employment Numbers Non-Farm Employment Data and January Unemployment Rate In addition, the market is still waiting to follow the results of the Bank of England meeting and GDP. Eurozone Q4 2023 total and January manufacturing PMI. China, Japan, the Eurozone and England as well.

Last week, the baht weakened along with the yen and some Asian currencies at the beginning of the week ahead of the Bank of Japan meeting, as the market expected the Bank of Japan to maintain monetary policy. He may not have given much signals yet regarding monetary policy adjustments, however, the value of the baht fluctuated in a lower range later in the period amid concerns about the future situation and outlook of the Thai economy. Although the yen has started to recover and the markets have interpreted the Bank of Japan Governor's statement as a signal of tightening monetary policy and that the Bank of Japan is close to withdrawing from special monetary easing measures.

In addition, the baht continued to decline following continued net selling of Thai stocks by foreigners. Against the dollar, this is supported by good US economic data, such as the purchasing managers’ index for the manufacturing and services sectors in January. and GDP in the fourth quarter of 2023, supporting the possibility of seeing the Fed keep interest rates at a high level for an extended period. However, the baht partially recovered at the end of the week after dollar selling pressure. To adjust positions ahead of US inflation numbers on Friday night (January 26) and ahead of the Fed meeting on January 30-31.

By InfoQuest News Agency (January 27, 2024)

Tags: kbank, baht value, kasikorn bank, exchange rate, baht