KBANK expects “baht” next week to be 32.70-33.70, keep an eye on BOJ-fund flow meeting

Kasikorn Bank Public Company Limited or (KBANK) Assessment of the movement of the baht next week. During the period (16-20 Jan. ’23) at the level of 32.70-33.70 baht / dollar, while the Kasikorn Research Center Evaluate important factors to monitor, including the results of the Bank of Japan (BOJ) meeting, China’s LPR interest rate announcement, foreign capital direction. and the movement of Asian currencies.

While key U.S. economic figures include retail sales, producer price index, industrial output, housing starts data, December used home sales, housing market index, U.S. manufacturing survey. New York Fed and the results of the Philadelphia Fed’s business outlook for January. Weekly jobless claims and the Fed’s Beige Book.

In addition, the market is still waiting to follow the 4Q22 GDP and December economic data. of China, as well as Eurozone inflation. and England in December as well

In the past week During the period (9-13 Jan. ’23), the baht continued to appreciate. Hit a record high in 10 months at 32.95 baht / US dollar, with the baht being supported by capital inflows from foreign investors. both in the stock market and the Thai bond market during the week. In addition, the overall picture of Asian currencies continued to appreciate in line with the direction of the yuan. Which still benefits from the hope of China’s gradual opening up and the yen from the forecast that The Bank of Japan may adjust its stance on monetary policy.

In addition, the baht continued to gain momentum until the end of the week. As the dollar faced selling pressure after US CPI data slowed in line with market expectations. which further supports the view that Inflation has passed its peak. And the Fed is likely to slow down on rate hikes. It may raise interest rates by about 25 bps. in the meeting later this month.

However, last Friday (13 Jan. ’23), the baht closed the market at 32.98 baht / US dollar compared to the level of 34.05 baht / US dollar on the previous Friday (6 Jan. ’23). Investment by foreign investors during (9-13 Jan. ’23), foreign investors net buy Thai stocks 10,480 million baht and have net inflows into the Thai bond market 18,990 million baht (net buy 19,069 million baht, but there are 79 million baht of expired debt instruments)

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