USD/THB to trade at 30.00 by year-end – ANZ

USD/THB has remained steady around 30.0 despite Bank of Thailand’s measures late last year and the domestic political situation. Growth headwinds are worrying. The Thai baht is expected to trade in a tight range this year, with gradual appreciation from Q2 onwards, strategists at ANZ Bank brief. 

Key quotes

“Persistent headwinds to growth from virus-related curbs remain a key. A second pandemic wave late last year meant that the Thai economy is off to a weak start this year, while high economic dependence upon tourist arrivals means that a strong growth rebound will have to wait longer.”

“Thailand’s current account surplus has fallen, as imports have gradually gathered momentum. However, we expect it to remain sizable enough to not drag the baht much in the near-term. In addition, a gradual return of tourists is forecast to begin in Q3, which will be a positive for the currency.” 

“We are watchful of rising US yields. Though they are not an immediate threat to the baht or Asian currencies in general, a significant break higher might lead to debt outflows and therefore currency weakness.” 

“We expect the baht to trade in a tight range, with the risk complex still biased towards a mild weakening in the near -term. Beginning Q2, we expect gradual appreciation, taking USD/THB to 30.00 by the year-end.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.


GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 


XAU/USD rallies back closer to multi-month tops, around $1,840 region

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. 

Gold News

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more