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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD eases to near 1.1650, eyes US PCE for fresh impetus

EUR/USD turns south to test 1.1650 in European trading on Friday, facing rejection once again near seven-week highs. The pair, however, continues to draw support from persistent US Dollar selling bias, despite a cautious market mood. Traders now await the US September PCE inflation and UoM Consumer Sentiment data.

GBP/USD holds gains near 1.3350 ahead of US data

GBP/USD sticks to a positive bias near 1.3350 in the European session on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation and sentiment data due later in the day. In the meantime, broad-based US Dollar weakness helps the pair stay afloat.

Gold remains below $4,250 barrier as traders await US PCE data for directional impetus

Gold gains some positive traction on Friday, though it remains confined in the weekly range. Dovish Fed expectations continue to undermine the USD and lend support to the commodity. Bulls, however, might opt to wait for the US PCE Price Index before placing aggressive bets.

UoM Consumer Sentiment Index expected to post a mild recovery in December

December’s preliminary Michigan Consumer Sentiment Index is forecast to have picked up to 52 from a three-year low of 51.0 in November. A stalled labour market and higher price pressures are likely to weigh on consumers’ confidence.

Canada Unemployment Rate expected to edge higher in November ahead of BoC rate decision

Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a weak print. The Unemployment Rate is expected to tick higher to 7% in November, while the Employment Change is forecast to come in flat after a nice gain in October.

Pi Network Price Forecast: Bearish streak nears critical support trendline

Pi Network (PI) edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges (CEXs) experience a surge in inflows.