Bangkok, Thailand - Kasikorn bank (KBank) projects the baht will trade between 31.80 adn 32.80 baht per dollar next week (September 1-5), following Friday’s close of 32.39 baht/dollar. The bank attributes the expected strengthening to dollar selling pressure fueled by signals from the Federal Reserve (Fed) suggesting potential interest rate cuts at the September FOMC meeting.
KBank notes the baht has also received support from positive trends in other Asian currencies and rising global gold prices (above $3,400 per ounce), indicating weakened dollar sentiment despite stronger-than-expected US economic data, including revised GDP figures and weekly unemployment claims.
Though, the bank observed a late-week depreciation of the baht linked to net foreign stock outflows following the Constitutional Court’s ruling regarding Pae Thong Than Shinawatra’s eligibility as prime minister.
Key factors to watch next week include domestic political developments, Thailand’s August inflation rate, and global gold and foreign exchange movements.
Significant US economic indicators scheduled for release include ISM and PMI data for the manufacturing and service sectors, private employment figures, non-farm employment and unemployment rates for August, jobless claims, factory orders, the Fed’s Beige Book report, and weekly unemployment numbers.
Markets will also be monitoring August PMI data from China, Japan, the Eurozone, and the UK, and also August inflation figures for the Eurozone.
