Market Players Anticipate RBA and BNM Meeting Results: Interest Rates and Currency Trends to Watch

▪ Asian side – Market players will wait to see the results of the meetings of the Reserve Bank of Australia (RBA) and the Reserve Bank of Malaysia (BNM) Both central banks may keep their policy interest rates at the current levels of 4.35% and 3.00%, respectively You might actually be waiting for the Fed to start gradually lowering interest rates.

Or it tends to lower interest rates gradually. To reduce risk and pressure on that country’s currency In addition, market players wait and see. Report on China’s exports (exports) and imports (imports) in April If the results are clear, it could make market players have a more positive view of China’s assets. This should help relieve some pressure on the Chinese Yuan (CNY).

▪Thai side – We assess that Trade flows pay dividends to foreign investors that will reach about 13 billion baht this week. This could be a factor that puts pressure on the floating baht to depreciate. and be wary of changes in the Thai financial market If market players are concerned about a conflict between the Thai government and the Bank of Thailand

To transfer the value of baht Momentum on the weak side has weakened. Making us see that The baht may fluctuate in both directions, but there are still factors that affect its depreciation. Both streams pay dividends to foreign investors. Including the purchasing power of the dollar at a time when the baht is strengthening.

As for the flow of foreign investors’ funds, they can continue to buy additional Thai assets gradually. Reduce pressure on the baht You should monitor the direction of gold prices. British Pound and Chinese Yuan that could affect the direction of the baht during this period

in dollar termsWe believe that the dollar could move sideways, but the dollar has a chance to strengthen if the BOE indicates that they are willing to gradually reduce interest rates faster than expected, such as cutting interest rates at a meeting in June. or in the case where Fed officials can repeat their position without rushing to cut interest rates. (Be careful not to come out to support interest rate hikes)

We adhere to that advice Market players should choose to use a wider range of exchange rate risk hedging tools. Among how the baht is changing Including other currencies that were significantly higher than before Market players can choose to use additional tools such as Options or Local Currency along with closing risk through forward contracts.

Looking at the value of the baht this week at the level of 36.40-37.10 baht / dollar.

The baht frame today It is expected to be at the level of 36.65-36.85 baht / dollar.