Global Markets Group Bank of Ayudhya Public Company Limited has a view on the direction of the baht this week The baht this week tends to move in a range of 35.75-36.50 baht/dollar compared to last week. The baht closed at 35.76 baht/dollar after trading in a range of 35.53-36.01, with the baht hitting its highest level in three months. The dollar strengthened against most major currencies, except for the pound last week. While the Federal Reserve vice chairman said the Fed could soon slow down to a rate hike, the St. Louis Fed chairman, however, said it was necessary to continue raising rates, with harsh expectations suggesting a hike . % in the future, and last month’s lower-than-expected inflation rate is only temporary evidence that inflationary pressures may be easing. respectively.
for this week’s situation Krungsri’s Global Markets Group believes the market will pay attention to the minutes of the Nov. 1-2 Fed meeting, before Thanksgiving, where transaction volume could seep. Britain has announced a budget plan of £55 billion a year to sort out the financial situation of the British government. This plan includes tax hikes and further cuts in government spending, the only country among the major industrialized economies still having a smaller economic size than it did before the pandemic. Inflation hit a 41-year high of 11.1% in October, which will put pressure 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. according to market expectations While the NESDB expects the economy to expand by 3.2% and 3-4% respectively in 2022 and 2023, the Bank of Thailand said it would not pursue a monetary policy that would surprise the market. This supports our view that the Monetary Policy Committee (MPC) will raise interest rates by 25 basis points to 1.25% at its November 30 meeting, which is acceptable and does not affect the broader economy. We expect capital flows to remain volatile.
