The baht strengthened the most in 4 months before depreciating/SET Worried about the direction of the Thai economy after MPC cuts GDP and maintains interest rates

The baht strengthened the most in 4 months before depreciating/SET Worried about the direction of the Thai economy after MPC cuts GDP and maintains interest rates

Kasikorn Research Center summarizes the movement of the baht this week, reaching its strongest level in 4 months at 34.58 baht per dollar. before returning to gradually weaken at the end of the week The baht strengthened amid selling pressure on the dollar. After statements from Fed officials began to reflect an attitude that they accepted that U.S. interest rate uptrend cycle It may have already ended. In addition, the dollar There is still a pressure factor from the decline in US bond yields. and figures for new home sales in October of the United States, which dropped more than expected. However, the baht depreciated to some extent after the MPC lowered its forecast for Thai GDP in 2023-2024 at the meeting on 29 Nov. and there were other factors. Further subtracted from the return of net selling of Thai bonds by foreign investors. While the dollar slightly recovered After several Fed officials signaled that The Fed has not yet considered cutting the policy interest rate next year.

For the week between 4-8 Dec. 2023, KBank expects the baht movement range to be at 34.50-35.50 baht per dollar. Factors that need to be monitored include inflation figures for November. of Thailand, signs of foreign capital Labor market data for November of the United States, as well as service sector PMI data for November. of the United States, China, England, and the Eurozone

The movement of the Thai stock market The Thai stock index continued to fall from last week. Thai stocks moved up briefly at the beginning of the week. There is a positive factor from the decline of US bond yields. before gradually adjusting down at a later time There are negative factors such as concern over the direction of the Thai economy after the MPC lowered its forecast for the growth of the Thai economy both this year and next year. Despite the decision to maintain interest rates at 2.50%, the MSCI Rebalance adjustment which took effect on November 30, coupled with the selling pressure of foreign investors, in addition, the continued selling pressure of stocks of airport business operators. There is still pressure on the Thai stock index this week as well.

Week 4-8 ​​Dec. 2023 KSecurities expects support levels to be at 1,375 and 1,360 points, while resistance levels are at 1,400 and 1,410 points, respectively. Factors that need to be followed include November inflation numbers. of Thailand, the direction of foreign capital Labor market data for November of the United States, as well as service sector PMI data for November. of the United States, China, England, and the Eurozone

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