Krungsri expects the baht to fluctuate between 36.20-36.75 baht/dollar this week, keeping an eye on inflation in the US.

Bank of Ayudhya expects the baht to fluctuate in the 36.20-36.75 baht/dollar range this week, keeping an eye on US inflation.

Global Markets Group Bank of Ayodhya (BAY) The baht is expected to move in the range of 36.20-36.75 baht/dollar this week compared to last week. The baht closed higher at 36.57 baht/dollar after trading in the range of 36.55-36.88 baht/dollar. The dollar weakened against all major currencies last week.

Meanwhile, US bond yields fell. After the Federal Reserve Chairman (Fed) commented that significant progress has been made in managing inflation. The inflation rate has returned and is tending to slow. But the Fed wants to get more information. This could confirm that the slowdown in inflation accurately reflects the picture of the economy before it decides to cut interest rates in the future. Such a situation suggests that the Fed is facing two risks: inflation and growth at the moment. The market is expecting that the Fed may be close to the beginning of a bearish interest rate cycle.

Several key figures were also weaker than expected, with the US ISM services index contracting for a second straight month in June to a four-year low, supporting views that the economy began to deteriorate in the second quarter. Stocks and bonds netted 845 million baht and 10.634 million baht respectively.

Krungsri's Global Markets Group commented on the market situation this week. Investors will focus on the Fed Chairman's remarks before Congress. Including the US consumer price index for June. After non-farm payrolls increased more than expected but the previous number was revised down. In addition, the unemployment rate rose. Wages are rising at a slower rate The Fed eased its interest rate cuts in September. If this week's inflation report comes in line with what the market expected.

The value of the pound is supported by political stability after the elections. In contrast to the euro, which faced pressure after the French elections that led to the formation of a minority government

For domestic factors, Thailand's overall consumer price index (CPI) for June rose 0.62% year-on-year, below market expectations and falling below the MPC's target range again, while core CPI, which excludes fresh food and energy, rose 0.36%.

The Bank of Thailand (BoT) governor said that although average inflation is below the target range, there is no need to cut interest rates immediately. This is because interest rate decisions should consider multi-dimensional impacts. It is clear that the current interest rate level is still appropriate. But it is ready to adjust if various factors change significantly.

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