Baht could test resistance level of 35.40 today: market strategist

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40016892


The baht opened at 35.25 to the US dollar on Wednesday, strengthening from Tuesday’s close of 35.32.

Baht could test resistance level of 35.40 today: market strategist

The currency is expected to move in a range between 35.20 and 35.45 on Wednesday, predicted Krungthai Bank market strategist Poon Panichpibool.

Poon said the baht is finding support and could strengthen as the market gradually opens to more risks.

However, there is a chance it could fluctuate and weaken during the day to test its resistance level of 35.40 to the dollar after foreign investors offloaded Thai assets, selling 7.1 billion baht worth of Thai stocks and bonds.

He suggested investors must beware of the dollar’s volatility before the US Federal Reserve chairman’s testimony to congress. If he does not signal that it is necessary to increase the interest rate by a big margin or is concerned about the shrinking economy, it might pressure the dollar to weaken.

Poon speculated that investors are gradually decreasing possession of the dollar (net long USD positions) even though it went to a new high recently. This shows most investors feel the dollar will not continue to rise and decided to sell the currency for profit.

He expects that the dollar might go down if the Fed does not signal a high rate increase, though its peak hawkishness might occur during a key meeting in July.

Poon advised investors to use hedging tools such as options to manage risks in the highly volatile currency market.

Published : June 22, 2022

By : THE NATION

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