Global Markets Group Bank of Ayudhya Public Company Limited has an opinion on the direction of the baht this week The baht this week tends to move within a range of 35.75-36.50 baht / dollar compared to the week last The baht closed at 35.76 baht/dollar after trading in the range of 35.53-36.01, with the baht reaching its highest level in three months The dollar strengthened against most major currencies except the pound on the week last Although the vice chairman of the Federal Reserve said that the Fed could slow down to a rate hike soon, the president of the St. Louis Fed, however, said that it needs to continue to raise rates, with strict expectations suggesting an increase. % in the future, and last month’s lower than expected inflation rate is only temporary evidence that inflationary pressures are likely to recede. It came out brighter than expected Foreign investors sold net Thai stocks and bonds at 6,735 million baht and 24,665 million baht, respectively.
about this week’s situation Krungsri Global Markets Group believes that the market will pay attention to the minutes of the Fed meeting on November 1-2, before the Thanksgiving period, where transaction volume may deteriorate. Britain announced a budget plan worth £55 billion a year to fix the UK government’s financial situation. This plan includes tax increases and further cuts in government spending The only country among the best industrial economies that still has a lower economic size than it was before the pandemic. Inflation hit a 41-year high of 11.1% in October, all of which will weigh on the pound going forward.
For domestic factors, GDP in the third quarter of 2022 grew by 4.5% compared to the same period last year. in line with market expectations Although the NESDB expects the economy to expand by 3.2% and 3-4% in 2022 and 2023, respectively, the Bank of Thailand said it would not pursue a monetary policy that would surprised the market. This supports our view that the Monetary Policy Committee (MPC) will raise interest rates by 25bp to 1.25% at its meeting on November 30. The level is acceptable and does not affect the overall economy. We expect capital flows to remain volatile.