KBANK expects next week's baht range to be 36.20-37.20, monitoring MPC meeting – US Economic Figures: InfoQuest

Kasikorn Bank (KBANK) expects the baht to move next week (April 8-12) at 36.20-37.20 baht/$ from the market close on Friday, April 5 at 36.65 baht/$.

Last week, the baht hit its lowest level in about six months at 36.84 baht/dollar before partially recovering at the end of the week. The baht declined at the beginning of the middle of the week, in line with the trend of most currencies in the region. Net selling pressure for Thai bonds from foreign investors and while the market is focusing on the results of the Thai Monetary Policy Committee (MPC) meeting on April 10, the dollar price rose. It was estimated in line with US bond yields. Supported by the March ISM Manufacturing Index in the US. It rose more than expected in the market, which stimulates expectations that the US Federal Reserve is unlikely to send a signal that it is preparing to cut interest rates in the near term.

However, the baht partially recovered after gold prices rose in the global market. Meanwhile, the dollar lost some of its positive range at the end of the week. Yet US economic numbers (such as the ISM service sector index in March and the number of people filing for unemployment benefits) came in below market expectations. There may be strong selling pressure on the dollar. To adjust the position before the announcement of non-farm employment figures in the United States.

An important factor to follow next week is the results of the Monetary Policy Committee meeting. And signs of the trend of Thai interest rates (April 10) and the trend of foreign capital. And statements from Federal Reserve officials. Meanwhile, important US economic figures include consumer inflation expectations. Consumer Price Index Producer Price Index for March The Federal Reserve meeting on March 19-20 recorded data on the number of weekly unemployment claims. And the consumer confidence index (preliminary) in April. In addition, the market is still awaiting the results of the European Central Bank meeting and the economic numbers for March. China, such as the consumer price index, producer price index and the amount of loans denominated in yuan

By InfoQuest News Agency (06 April 2024)

Tags: kbank, baht value, exchange rate, baht