Mr. Poon Panichphiboon, Money Market Strategist, Krung Thai Bank Capital Markets revealed that the baht opened this morning (December 29) at 34.72 baht to the dollar, “stable, unchanged” from the previous day’s closing level .bah today It should be at 34.60-34.80 baht per dollar.
forbaht trend look that bahtThere is still a tendency to move sideways, which if the dollar continues to gain support from the risk of market shutdown It could push the baht to fluctuate to the weaker side to some extent. Also, if the price of gold falls close to the resistance zone There may be a flow of transactions to buy gold at a shorter pace and it can also put pressure on the baht. But let’s still see Although the baht may experience depreciation pressure
But the factors supporting the appreciation ofbahtIt still exists, such as foreign investors buying Thai stocks. who continue to buy Thai stocks net Causing the baht not to depreciate much or break through the resistance zone that we previously estimated at around 34.90-35.00 baht per dollar.
The baht’s recent high volatility reflects the need for more hedging instruments. let us advise Entrepreneurs should use a more diversified exchange rate hedging strategy. In particular the use of options, which will increase the efficiency of hedging during the period of high market volatility.
for the coastal atmospherefinancial marketThe US as a whole remains in a state of risk dampening. Amid worries about US economic outlook Slows sharply and risks entering a recession. If the Fed continues to raise interest rates that some market participants are worried about China’s full opening up next year It may prevent the easy resolution of inflation problems and may push the Fed to continue raising interest rates. The above concerns were reflected through Rising US 10-year bond yields to 3.88% made technology stocks and growth stocks sensitive to rising bond yields/interest rates. Continued declines, such as Apple -3.1%, Alphabet -1.6%, Microsoft -1.0%, pushed Nasdaq tech stocks down -1.35%, while the S&P500 closed at -1, 20.
Regarding European equities, the STOXX600 index fell -0.13%, driven by selling pressure on technology stocks and growth stocks due to a long-term increase in bond yields. as in the US (ASML -1.7%, Adyen -0.8%) Furthermore, market participants are waiting to assess the impact of China opening up early next year. whether it will have a positive or negative effect on the European economic picture anymore Due to the recent situation of the COVID-19 epidemic in China, it is still worrying.
in the foreign exchange market The dollar was slightly stronger against the major currencies. This was supported by a rise in US 10-year bond yields and financial market hedging. Recently, the dollar index (DXY) rose close to 104.5 points. But the rise in both the dollar and the yield on US 10-year bonds pushed the price of gold (the COMEX gold contract for February delivery) to remain volatile near $1,812 an ounce. with some moments where the price of gold has fallen close to the support zone around $1,800 per ounce There is a possibility that some market players could wait for the gold retracement to gradually buy and the flow of such transactions could push the baht to weaken a bit.
For today, the players on the transfer market are waiting to win. US labor market data such as initial jobless claims, including continuing claims. Initial unemployment is below the 220.00 level or the number of continuing jobless claims is below 1.67 million. Market participants may see that the still strong picture of the US labor market may encourage the Fed to continue raising interest rates. and can reach above the 5.00% that the market is currently looking at. This situation could push the atmosphere in the financial market to be risk-free or more cautious.
