Baht marginally up but continues to fluctuate

The baht fluctuated overnight within a range of 34.56-34.63 baht/US dollar amid light transaction volumes due to the Christmas holiday season in several countries. Additionally, market players were attentive to new factors, causing the baht to fluctuate near the 34.50 baht/dollar level, which had previously been estimated as the year-end target.

The US and European stock markets remained closed for the Christmas holiday. Futures contracts of the US stock market indices showed marginal adjustments, reflecting a financial market atmosphere possibly remaining open to risk-taking during this period.

Regarding currency markets, the atmosphere may still lean towards risk-taking from the perspective of futures contracts in the US stock market, which could mildly pressure the dollar to move sideways or weaken. The Dollar Index (DXY) might fluctuate within the range of 101.5-101.8 points, Poon added.

The European financial markets will remain closed today (Boxing Day), which might result in continued low transaction volumes. Market players should prepare to face potential fluctuations in this final week of the year.

The baht is expected to fluctuate sideways near the year-end target level of 34.50 baht/dollar until new factors prompt clearer movements. During this period, Poon recommends keeping an eye on gold price trends as they continue to influence baht movements.

He also advises monitoring foreign fund flows, as foreign investors might continue selling Thai assets, although selling pressures appear reduced compared to the previous week.

The foreign selling of Thai assets might contribute to the baht's slight softening, but overall, breaching the resistance zone at 34.80 baht per US dollar might not be easy without new compelling factors. The support range is anticipated to remain within 34.40-34.50 baht per dollar, reflecting the market's expectations, Poon concluded.