KAZIKORN BANK PUBLIC COMPANY LIMITED Or KBANK Next week (August 19-23) the baht is expected to move in the range of 34.85-35.50 baht/dollar, while the Khasikorn Research Center reports on Thailand's second quarter 2024 GDP numbers, Monetary Policy Committee (MPC) meeting results, political issues and the new government's economic policies. Evaluate important factors to be monitored including Including signals about the direction of the president's interest in the direction of foreign capital. Federal Reserve (Central Bank) From Annual Seminar in Jackson Hole, Wyoming.
Meanwhile, key U.S. economic statistics include sales of used homes and sales of new homes in July. The market is waiting to follow the record of the central bank meeting on July 30-31 and the weekly jobless claims number, China's LPR interest rate and the July inflation rate. (Preliminary) PMI indices for the manufacturing and services sectors in August for the Eurozone and Japan, as well as for Japan, the Eurozone, the UK and the US.
Last week (August 12-16), the baht hit its strongest level in 7 months at 34.84 baht/dollar, but has declined in some favorable periods. After good US economic numbers came out, it helped support the dollar's recovery, with the baht breaking above the 35.00 level and hitting its strongest level in 7 months at 34.84 baht/dollar earlier in the week.
Amid pressure on the dollar, the U.S. producer price index numbers followed a trend of speculation that the federal policy rate could be cut by more than 25 basis points at the FOMC meeting in September. It came out lower than analysts' expectations. Also, the rise in gold prices in the global market has added support for the baht to strengthen further.
However, the pot weakened again by mid-week. According to the net selling pressure of Thai bonds by foreign investors. Additionally, the market is still waiting to follow the political issues in the country. While the dollar is gradually recovering in valuation in line with the rise in US bond yields. Retail sales numbers after July came in better than the US market expected. This led the market to discount the possibility of the central bank cutting interest rates by more than 25 basis points at this September's FOMC meeting.
In addition, on Friday (August 16), the level of foreign investors' investment portfolios was 35.02 baht/dollar in the domestic stock market compared to 35.29 baht/dollar the previous Friday (August 9). Between 13-16 August 2024, foreign investors bought a net of 429.8 million baht and They took a position on the net outflow side of 27,923 million baht (net sales of bonds 26,823 million baht and 100 debt instruments 1000 with 1000 debt instruments) in the Thai bond market. (dates million baht)
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