HoonSmart.com >> “Krungsri” expects the baht this week to trade in the range of 29.80-30.10 baht / dollar, while the MPC meeting this 3 Feb, expects policy interest to remain at 0.50%
Global Markets Group Bank of Ayudhya (BAY) has a view on the direction of the baht this week that It is likely to move in the range of 29.80-30.10 baht / dollar compared to the previous week. The baht closed steady at 29.97 baht / dollar after trading narrow in the 29.95-30.06 baht / dollar range. Foreign investors net sells in the Thai stock and bond markets worth 1.33 billion baht and 800 million baht, respectively.
In January, the baht appreciated around 0.1%, with the dollar strengthening last week against most major currencies. While risky assets have shifted on the back of profit-taking and concerns about President Biden’s fiscal stimulus, which is likely to lag and need to downsize.
The Federal Reserve (Fed) resolved to maintain its interest target frame at 0-0.25% and maintain a measure to buy at least $ 80 billion in bonds per month. And at least $ 40 billion monthly mortgage-backed securities, as expected by the market. The Fed pledged to continue supporting the economy. The European Central Bank (ECB) said it could decide to cut interest further if necessary. Investors saw the stance echoing efforts to slow down the euro as a verbal intervention.
Global Markets Krungsri Group believes that investors will keep an eye on several key US economic data, such as service sector indices. And employment This includes the Bank of England meeting (BOE). The issue of global vaccination remains closely monitored as well. While the Fed’s latest statement said the economic recovery was slowing. Many industries are able to adapt to the epidemic situation, but the labor market, especially the service businesses, is fragile. There are risks in the near term before the economy recovers in the second half of the year.
Krungsri noted that in this round the yen was not driven by risk closures and market volatility as it should have been.However, global low interest conditions continue to support our view that the yen will appreciate. In the long run
For factors in that country It is expected that the Monetary Policy Committee. The MPC (MPC) will resolve to maintain the policy interest at 0.50% in the meeting on 3 February. Private consumption in December increased 2.7% from the same period last year. While private investment grew 4.5%, the BOT reported that the economy was gradually recovering but not thoroughly and began to see the impact of a new outbreak at the end of December.
The baht index depreciated. Krungsri believes that the authorities will continue to focus on distributing liquidity in a focus on efficiency rather than increasing liquidity into the system as a net.
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