Coronavirus epdiemic seen impacting Thai economy
The coronavirus epidemic in China and other Asian countries will be a key factor in affecting the Chinese economy and also Thailand this week and maybe the next, experts said.
The Chinese yuan weakened this week (January 20 to 24) as the coronavirus continued to spread during the Chinese New Year festival. The virus has raised concerns about its impact on China’s economy, as well as the overall economic situation in Asia.
The baht appreciated at the beginning of the week, and weakened towards the end. Thai tourism was expected to be hit by the coronavirus epidemic in China and other Asian countries.
CIMB THAI bank predicted that the baht next week (January 27 to 31) would move within a range of Bt30.20 to Bt30.70 to the US dollar.
In addition, all eyes will be on a US Federal Reserve meeting on January 28-29. Also, the US will report its economic growth rate for the last quarter of 2019 on January 30.
CGS-CIMB Securities Thailand forecast that the Stock Exchange of Thailand (SET) Index would possibly fluctuate due to the spread of the coronavirus.
CGS-CIMB Thai suggested that investors monitor the results of the Fed’s meeting, as well as the Constitutional Court’s judgement on the budget bill of 2020. The company predicted the SET Index’s support next week at 1,555 points, and resistance at 1,585 points.
Gold bar price this week was globally at US$1,557.57 per ounce, while the price in Thailand was Bt22,500 per baht weight, up from Bt22,350 per baht on Monday (January 20)
The YLG Bullion International estimated the first support in the future at US$1,569 per ounce. If the price passes this support, the next one would be around US$1,573 to US$1,580 per ounce.
