Baht unchanged as market awaits NFP data
The baht opened at 33.64 to the US dollar on Monday, unchanged from the previous closing rate.
The Thai currency is likely to move between 33.55 and 33.75 during the day and between 33.40 and 34.00, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon predicted that the dollar would drift sideways this week because investors are waiting for the Nonfarm Payrolls (NFP) report. If the NFP is better than expected, the quantitive easing (QE) might decrease next month and support the dollar to strengthen.
Moreover, risk factors especially, US debt ceiling negotiation support the dollar’s momentum in the short term. Investors are keeping an eye on the negotiation. The US Congress must raise the debt ceiling before October 18 to avoid default.
The key resistance level for the baht would be at 34.00 to the dollar, which is the level at which exporters might sell the US currency.
The baht’s key support level would be from 33.40 to 33.60, the level some importers are waiting for so they can buy dollars, he added.
Related News
Baht strengthens shortly amid risk factors
Baht not expected to strengthen in short term amid risk factors
Baht sees weakest opening in four years
The market was in a risk-off state last week because the economic recovery slowed down with stagflation. The market was also pressured by the uncertainty from the US debt ceiling negotiation.
