Global Markets Group Bank of Ayudhya Public Company Limited has a view on the direction of the baht this week that The baht this week tends to move within a range of 35.75-36.50 baht/dollar compared to last week. The baht closed at 35.76 baht/dollar following trading in the range of 35.53-36.01, with the baht hitting its highest level in three months. The dollar strengthened once morest most major currencies except the pound last week. While the Federal Reserve’s vice chairman said the Fed may slow down to a rate hike soon, the St. Louis Fed president, however, said it needed to keep raising rates, with stern expectations suggesting a hike. Interest rates are expected to rise above 7% in the future, and last month’s lower-than-expected inflation rate is only temporary evidence that inflationary pressures are likely to subside. came out brighter than expected. Foreign investors sold net Thai stocks and bonds at 6,735 million baht and 24,665 million baht, respectively.
for this week’s situation Global Markets Group of Krungsri views that the market will pay attention to the minutes of the Fed meeting on Nov. 1-2, ahead of the Thanksgiving period, in which transaction volume may seep. Britain announced a £55 billion-a-year budget plan to fix the UK government’s financial situation. This plan includes tax hikes and further cuts in government spending. The only country among the top industrialized economies that still has a lower economic size than it was before the pandemic. Inflation hit a 41-year high of 11.1% in October, all of which will put pressure on the pound going forward.
For domestic factors, GDP in the third quarter of 2022 grew by 4.5% compared to the same period last year. according to market expectations While the NESDB expects the economy to expand by 3.2% and 3-4% in 2022 and 2023, respectively, the Bank of Thailand said it would not pursue a monetary policy that would surprise the market. This supports our view that the Monetary Policy Committee (MPC) will raise interest rates by 25bp to 1.25% at its November 30 meeting. The level is acceptable and does not affect the overall economy. We expect capital flows to remain volatile.
