The baht opened today, June 16, 2023, at 34.60 baht per dollar, appreciating from the end of the previous day at 34.81 baht per dollar. Check out the baht frame today. It is expected to be at 34.50-34.70 baht per dollar. In the period before the result of the BOJ meeting is recognized and it can be between 34.45-34.75 baht per dollar. during the gradual process of recognizing the results of the BOJ meeting
Poon Panichphiboon, an analyst at Krung Thai Bank’s trading room, said the baht opened today at 34.60 baht per dollar, appreciating from the previous day’s close at 34.81 baht per dollar. about the trend of the baht last night The baht has clearly appreciated, testing the zone of 34.60 baht per dollar. following a rebound in gold prices and the continued depreciation of the dollar.
It is considered that the appreciation of the baht could begin to slow down, especially if the Bank of Japan (BOJ) reiterates its stance on accommodative monetary policy. Putting pressure on the Japanese Yen (JPY) to get a chance to depreciate somewhat. (After appreciating last night as well as the baht) by having to keep an eye on the baht’s important support zone around 34.50 baht per dollar. That the baht will be able to appreciate below that level or not, but importers may wait for the moment when the baht appreciates to buy the dollar gradually. Therefore, the appreciation of the baht may be limited.
However, the baht may appreciate near the support zone. After the atmosphere in the financial market returned to be more exposed to risk (Risk-On), also in the Chinese stock market and the Hong Kong stock market. started to get a bright direction After the People’s Bank of China (PBOC) decided to cut interest rates as expected. causing the baht to gain the virtue of appreciating according to the direction of the Chinese yuan currency Including if foreign investors gradually return to buy more Thai assets. In addition, the direction of the gold price should be closely monitored. Because if the price of gold continues to rise It is expected that market players can gradually take additional profits. And the flow of such transactions contributes to the appreciation of the baht.
Recommendation that during the financial market is still facing the uncertainty of Thai politics including the direction of the monetary policy of the main central banks Entrepreneurs should use a variety of hedging tools such as options to increase efficiency in protecting against exchange rate risk.
Check out the baht frame today. It is expected to be at 34.50-34.70 baht per dollar. In the period before the result of the BOJ meeting is recognized and it can be between 34.45-34.75 baht per dollar. during the gradual process of recognizing the results of the BOJ meeting
The views of US Stock Market players who believe the Fed will not be able to continue raising interest rates twice, according to a new Dot Plot after the latest economic data, such as Initial and Continuing Jobless Claims, come out worse than expected. Encouraged market players to continue to accept risks, mainly buying large technology stocks, such as Microsoft +3.2%, Meta +3.1%, resulting in the S&P500 index closing the market +1.22%.
On the European stock market, the STOXX600 index declined -0.13%, weighed down by the latest interest rate increase of +25bps and a sign that the European Central Bank (ECB) is ready to continue raising interest rates to control inflation. name brand stocks and mining stocks are up this week (Kering -1.3%, Anglo American -0.10%).
in the bond market Market players remain uncertain of the Fed’s prospects for two more rate hikes this year. after the US economic data report The latest came out worse than expected. especially in the number of applicants for unemployment benefits Causing market players to gradually wait for the bond yield to increase in buying Causing the US 10-year bond yield to turn around and fall to 3.72% after rising near the resistance zone around the 3.85% level.
in the currency market The dollar depreciated significantly against the major currencies. In particular, the euro (EUR) decided after the ECB raised the policy rate and indicated that it was prepared to continue raising interest rates to control inflation, causing the dollar index (DXY) to fall to 102 points gold Although gold prices fell after the Fed meeting, the reversal in the dollar and decline in the US 10-year bond yield after the ECB meeting and the report US economic data encouraged prices gold (COMEX gold contract for delivery in August) to rebound to test the $ 1,970 zone per ounce, which suggests that some market players may gradually take gold profits. After buying gold during the fall and the flow of such transactions may have contributed to the strengthening of the baht last night.
For today, the main highlight will be the outcome of the Bank of Japan (BOJ) meeting, where the BOJ will continue to use accommodative monetary policy by “maintaining” the policy rate at -0.10% and continuing to maintain the 10-year bond yield. at 0.00% +/- 0.50% until the BOJ is confident that inflation will likely remain close to 2% in the long term, although inflation is currently above 3.5% probably worrying that Wage growth is not high enough to keep inflation close to 2% over the long term.
in the European side Market players will await the Eurozone CPI inflation report in May. which is one of the key factors affecting the direction of the monetary policy of the European Central Bank (ECB), considering whether inflation remains at a high level This will give the ECB the opportunity to raise interest rates (Rate Deposit Facility) to a minimum of 3.75%.
and on the US side Market players will wait to keep an eye on the US economic outlook. via the U of Michigan Consumer Sentiment Index report, which is in the same report Market players will wait for signals about inflationary trends to pass. Short-term and long-term inflation forecasts
