THB: Has the scope to fall further to 34 on a weaker USD – DBS

FXStreet Insights Team FXStreet

The THB has retraced over 80% of this year’s losses against the USD, DBS Senior FX Strategist Philip Wee notes.

Bears may push towards 34 on a weaker USD

“In the first four months of this year, USD/THB rose from 34.0 to 37.3 from the Fed’s ‘high for longer’ rates stance to push back the market’s aggressive rate cut bets. In early August, the Bank of Thailand announced plans to lift the annual outflow limit to $200k from $50k, reflecting its confidence in the THB’s stability.”

“Despite the Thai constitutional court removing Srettha Thavisin as prime minister last Wednesday, USD/THB closed below 35 last week for the first time since mid-August 2023. USD/THB has the scope to fall further to 34 on a weaker USD, and the kingdom has moved quickly to defuse the political leadership uncertainty.”

“Over the weekend, Thai King Maha Vajiralongkorn granted former Thai prime minister Thaksin Shinawatra a royal pardon and appointed his daughter, Paetongtarn, the new prime minister.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD stays weak near 1.1850 on firmer US Dollar

EUR/USD holds onto Friday’s losses near 1.1850 in the early European trading hours on Monday. The pair remains vulnerable to further downside as the US Dollar stays firm following President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair. The focus now shifts to the US ISM Manufacturing PMI data.

GBP/USD drops below 1.3700 as markets mull a Fed under Warsh

GBP/USD stays under pressure below 1.3700 in the European morning on Monday. Traders weigh what a Federal Reserve under Kevin Warsh might look like, propping up the US Dollar at the expense of the Pound Sterling. The US ISM Manufacturing Purchasing Managers Index report is next of note later on Monday.

Gold: Correction extends ahead of US ISM PMI

Gold price extends correction to fresh monthly lows near $4,400 in European trading on Monday, pressured by some profit-taking. The precious metal continues its downtrend after reaching historic highs last week as Kevin Warsh's nomination as the next Fed chair eases concerns over the US central bank’s independence, bolstering the US Dollar recovery. US ISM PMI Manufacturing PMI data is awaited.

Cardano dips below $0.28 as bears eye October 2023 lows

Cardano price trades in red, slipping below $0.28 at the time of writing on Monday, following a correction of more than 15% in the previous week. The broader crypto market remains under pressure, with Bitcoin slipping below $75,000 on Monday.

Warsh effect ripples through markets, central banks on deck this week

The first full month of the year is behind us, and, honestly, it has been rather more dramatic than most had anticipated when toasting the New Year. We wrapped up last week with US President Donald Trump announcing his Fed Chair pick.

Bitcoin slips below $75,000 as selling pressure accelerates

Bitcoin (BTC) price falls below the $75,000 mark on Monday, having corrected nearly 11% in the previous week and reaching level not seen in nearly 10 months. Market momentum has clearly turned bearish, with technical indicators pointing to further downside toward the next key support at $70,000.