Kasikorn Bank expects the baht to move in the range of 36.30-37.00 baht/dollar next week.

Kasikorn Bank expects the baht to move in the range of 36.30-37.00 baht/dollar next week, monitoring the direction of foreign capital. Fed Chairman Statement

Kasikorn Bank KBANK sees the baht moving in the next week (July 8-12) at 36.30-37.00 baht/USD, and Kasikorn Research is assessing important factors to follow, including the direction of foreign capital (inflows), the currency’s position in the region, the Fed Chairman’s statement to the US Congress, and other Fed officials’ views on interest rate direction

While important US economic figures include the Consumer Price Index. Producer Price Index for June, the weekly number of social welfare claimants including the Consumer Confidence Index for July and inflation expectations. In addition, watch for the results of the meetings of the Reserve Bank of New Zealand and the Reserve Bank of Korea. In addition to Chinese economic figures for June, such as the Consumer Price Index. Producer Price Index and the amount of new loans issued in yuan as well.

Last week, the baht turned around and strengthened. Meanwhile, the dollar lacked support. After weaker-than-expected U.S. economic data, the baht weakened at the start of the week in line with the yen, yuan and other regional currencies, while the dollar also benefited from rising U.S. bond yields following market expectations of a possible recession. Former President Donald Trump has a chance to win the November election.

However, the baht turned strong in line with the trend of gold prices in the global market. In addition, the dollar lacked support after the decline in US bond yields. After the US economic figures came in weaker than market expectations, such as the private sector employment figures and the ISM service sector index in June. And information on the number of people applying for weekly unemployment benefits, this caused the market to return and increased the possibility of seeing the Federal Reserve cut interest rates more than once this year.

In addition, the dollar sentiment was also pressured by the Fed Chairman’s statement that the Fed has made further progress in bringing inflation back to target, although it will take some time to become more confident.

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