US dollar appreciates Driven by the government bond market While the market waits for a statement from the Fed. The baht depreciated according to regional currencies. Before closing the market at 30.34 / 35 baht / US dollar.
Foreign exchange department Bangkok Bank reports that the market movement of the foreign exchange on Thursday, March 4, 2021, the baht market opened today morning (4/3) at the level of 30.35 / 37 baht / US dollar. Slightly depreciated from Wednesday’s close (3/3) at 30.30 / 32 baht / US $.
The baht opened the market to depreciate according to most currencies in the region. While the US dollar was driven by expectations of the US economic recovery. And the trend of rising US inflation
Last wednesday night The Federal Reserve or Fed released its latest Beige Book report, saying that “economic activity has expanded slightly since last month. January to mid-February, in most of the Fed’s 12 regions, most businesses remain optimistic about the next 6-12 months. While the vaccine against COVID-19 Has been spread more widely. “
But the labor market has not grown as much as expected. About 10 million are still unemployed since before the coronavirus outbreak last year. The Fed will hold the next policy meeting in the next two weeks. Among more forecasts that The risk of epidemic is reduced. And the economy will begin to grow stronger
These factors support the economic outlook following the expansion of the COVID-19 vaccination program. And the possibility of a $ 1.9 trillion federal expenditure measure.
Causing the market to predict that Fed may need to cut support measures sooner than expected. The Fed officials rejected the idea. He noted that many problems remain, ranging from high unemployment to low inflation. That must be eased before the Fed can consider changes in monetary policy.
Investors await a statement from Fed Chairman Jerome Powell today to see if the Fed is concerned with recent spike in US Treasury yields. During the day, the baht moved within the range of 30.33-30.38 baht / US dollar. Before closing the market at 30.34 / 35 baht / US dollar.
For the movement of the euro The euro opened the market this morning (4/3) at 1.2051 / 52 USD / EUR. Weakened from Wednesday’s close (3/3) at 1.2084 / 86 USD / EUR.
Yesterday, Fabio Panetta, a member of the European Central Bank Board or the ECB, said the ECB should expand the bond purchase program. Or add quota Allocated to them if necessary To reduce bond yields after several weeks of continued rising borrowing costs.
With bond yields increasing since the beginning of the year. Which is in line with US bonds. And many ECB policymakers have called for increased bond purchases through the Pandemic Emergency Purchase Program, or PEPP, to keep borrowing costs low.
Mr Fabio stressed that the need to prevent an increase in the GDP-weighted yield curve was unthinkable. And should not hesitate to increase the purchase volume of bonds. And use all of the statements in the PEPP project, or more if necessary.
During the day, the euro moved within the frame between 1.2042-1.2066 US Dollar / Euro And closed at 1.2035 / 36 USD / EUR
For the movement of the yen The yen opened today morning (4/3) at 107.02 / 05 yen / US dollar. Weakened from Wednesday’s close (3/3) at 106.87 / 90 yen / US dollar. The yen depreciated on the back of the dollar’s appreciation on the rise of the 10-year government bond yield to 1.49% last night.
However, investors wait and see if Powell will be concerned about the recent sellout of US government bonds or not. And investors keep an eye on that Will Powell adjust his assessment of the economy? Before the Fed holds the next policy meeting on March 16-17.
During the day, the yen moved in the frame between 106.95-107.29 Yen / US Dollar And closed at 107.28 / 30 yen / US dollar.
The main economic index for this week is the Thai consumer confidence index. February (4/3), UK Construction Purchasing Managers Index February (4/3), Number of people applying for the first US unemployment benefit (4/3), US nonfarm productivity Q4 (4/3),
Thailand’s consumer price index February (5/3), German factory orders January (5/3), US non-agricultural employment. February (5/3), US unemployment rate February (5/3)
For the 1-month morning swap point in the country, the rate was -0.1 / + 0.1 satang / US dollar. And the 1-month morning hedging rate abroad is + 2.5 / + 3.00 satang / US dollar.
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