The baht opened at 34.41, ‘doesn’t move’ after financial markets ease concerns over bank collapses – open to more risks.
On March 17, Mr. Poon Panichphiboon, money market strategist, Krungthai GLOBAL MARKETS, Krung Thai Bank, revealed that the baht opened this morning at 34.41 baht per US dollar. It was unchanged from the previous day’s close. Look at the baht frame today. Expected to be at 34.25-34.50 baht per US dollar.
Mr Poon said the atmosphere in the US financial market has returned to risk-on as market players began to ease concerns over the stability of the US and European banking systems. As big banks in the US side are working together to inject liquidity for the First Republic Bank, a US medium-sized bank that is facing liquidity problems.
for the trend of the baht today An atmosphere in the financial market that reopens to risk exposure. May help fund flow foreign investors gradually return to Thai assets. especially the Thai stock market The latter is a continuous net selling side. This may give the baht a chance to appreciate some.
However, if gold prices continue to decline according to the reduction of holding positions of market players It may be a factor to put pressure on the baht on the depreciation side. from the flow of buying gold in a short stroke (But must see the price of gold falling around the support zone, such as $ 1,900 per ounce)
However, the appreciation of the baht may not be very obvious. Because market players may wait to see the results of the US Federal Reserve (Fed) meeting next week. In addition, if the baht appreciates near the support zone of 34.25-34.30 baht per US dollar. There may be some purchasing power from importers back.
Mr. Poon said that in the currency market side US dollar moves volatile Especially during the market gradually realized the outcome of the meeting of the European Central Bank (ECB) and the statement of the ECB chairman after the meeting, but overall, the USD currency index (DXY) still fluctuated near the level of 104.4 points and had The chances of the US dollar swinging are narrow until the markets know the outcome of next week’s Fed meeting.
For today, market players will wait to assess the US economic outlook through the Consumer Confidence Index. By the University of Michigan (U of Michigan Consumer Sentiment), the market expects the consumer confidence index in March. May remain stable at 67 points, which may continue to support consumption trends in the US side.
In addition, market players will keep an eye on inflation expectations data from the Consumer Confidence Index report. If expecting inflation in the short term and medium term slow down continuously Indicates that the Fed is under pressure to accelerate interest rates down. Especially at a time when the US financial market is facing turbulence from concerns about banking system problems. The Fed may raise interest rates by as little as 0.25% at its March meeting.
“Market players will continue to monitor the stability of the US and European banking systems, where concerns about banking problems could dampen the short-term investment climate,” Poon said.
