Mr. Poon Panichphiboon, Money Market Strategist, Capital Market Krung Thai Bank revealed that the baht opened this morning (11 January) at 33.45 baht per dollar. “appreciated” from the previous day’s close at 33.52 baht per dollar Look at today’s baht frame. it is expected to be at the level 33.30-33.60 baht per dollar
In terms of the baht’s trend, we see profit-taking gold transaction flows. Including foreign investors’ purchase of Thai assets, it contributed to the appreciation of the baht. With a moment of appreciation, touching 33.33 baht per dollar the previous day. which we consider The baht is likely to continue to move sideways today until market players gradually acknowledge the US CPI inflation report. as we have assessed before As for the important resistance zone, it will be 33.50-33.60 baht per dollar. We saw some players gradually coming in to sell their dollars. While foreign investors continued to buy Thai assets during this period.
The recent high volatility of the baht reflects the need for more hedging tools. make us recommend Entrepreneurs should use a more diversified exchange rate hedging strategy. Especially the use of options, which will increase the efficiency of hedges during the period of heavy market volatility.
atmosphere in the US financial market Back in risk exposure again Because the Fed chairman’s speech the previous night did not give a clear signal about the direction of the Fed’s policy interest rate. (Most content talks about independence from central bank politics) makes market players dare to come back to buy technology stocks and growth style stocks in anticipation of Thursday’s CPI inflation report. That inflation will continue to slow) pushed the Nasdaq technology stock index up +1.01%, while the S&P500 closed the market +0.70%.
In European stocks, the STOXX600 index declined -0.59% as market players took profits. European Central Bank (ECB) Isabel Schnabel continued to show support for continuing to raise interest rates until the ECB controls inflation. ECB officials have weighed on technology stocks and growth style stocks in Europe, such as Adyen -1.0%, ASML -0.7%.
in the bond market Overall long-term bond yields have increased as financial markets have become more exposed to risk. Including the views of ECB officials who continue to support the continued interest rate hike. Although the Fed chairman’s speech did not mention the outlook for policy interest rates. Most recently, the US 10-year bond yield continued to rise to 3.60%. Market players will be waiting for important highlights such as The CPI inflation report means that, in the short term, the US 10-year bond yield may swing sideways near 3.50% until the data is released.
in the currency market The dollar as a whole moved sideways, with the dollar index (DXY) changing recently close to 103.3 points, which we estimate to be above 103.3 points. The dollar will move sideways or may weaken slightly. If the market is exposed to continued risk Because market players are waiting to assess the direction of the Fed policy rate. From the CPI inflation report, before adjusting to a clear position on the dollar again, however, although the dollar remains stable and the US 10-year bond yield has risen, but the price of gold (the COMEX gold contract for the presentation of July Nov.) has been able to stabilize near the resistance zone around the level of 1,880 dollars per ounce, we think There is such a movement of gold prices. Causing market players to gradually come to sell and profit gold And the flow of profit-making gold transactions also contributed to the appreciation of the baht to some extent.
For today, market players may wait to assess the trend of energy demand in the United States. through the crude oil inventory balance Including refined oil and gasoline stocks. This may affect the price of WTI crude oil in the short term. If the crude oil inventory falls more than expected. It may (reflecting higher than expected demand) help to rebound crude oil prices to some extent.
However, market players will continue to wait mainly for the US CPI inflation report on Thursday, causing the overall market movement to the side.