Kasikorn Bank Public Company Limited or K Bank Consider the movement of the baht value next week (June 3-7, 2024) at 36.50-37.20 baht/$ from the market close on Friday, May 31, 2024 at 36.78 baht/$.
Last week, the baht adjusted in a narrow range at the beginning of the week due to the lack of new factors to stimulate it, but the baht gradually weakened during the rest of the week. There was a negative factor from net foreign short positions in Thai stocks and bonds mid-week. Decline in gold prices in global markets and decline in the value of some Asian currencies.
In addition, the dollar continues to rise after the increase in US bond yields. After statements from Federal Reserve officials, the market's view was supported that the Fed may maintain interest rates at a high level for a long period, but support for the dollar has slowed somewhat. After US economic data came weaker than market expectations, such as GDP numbers for the first quarter of 2024 and data related to the number of people applying for unemployment benefits. In addition, there should be selling pressure to adjust positions before US PCE/core price index inflation numbers emerge.
Next week, important factors to watch include May's inflation rate. Thailand, the trend of foreign capital, the situation of gold prices in the global market and the results of the European Central Bank meeting
While important US economic figures include the ISM/PMI index for the manufacturing and services sectors. Private Sector Employment Numbers Nonfarm Employment Data and Unemployment Rate in May Factory Orders Job opening numbers and labor turnover rates for April, including the number of people applying for weekly unemployment benefits.
In addition, the market may wait for the Purchasing Managers' Index (PMI) follow-up for the manufacturing and services sectors in May. From Japan, China, the Eurozone and England, May export numbers for China as well