Thai Baht: Could a double top emerge against the US Dollar as focus turns to BoT? – OCBC

Pressure on the Thai Baht (THB) has pushed it to a three-month low against the Dollar, with higher Oil prices, weaker Gold and a stronger USD weighing on the currency, according to OCBC’s Sim Moh Siong and Christopher Wong. Their near-term outlook remains slightly cautious as attention turns to Wednesday’s Bank of Thailand (BoT) meeting and moves in Gold and Oil. On the technical front, a potential double-top near recent highs and nearby support levels are in focus.

Will THB Remain Under Pressure Ahead of the BoT Meeting?

"THB remained under pressure, having weakened to a three-month low amid higher oil prices, weakness in gold and a firmer USD."

"That said, THB decline came despite foreign purchases of Thai equities and bonds, suggesting that portfolio flows have not been the main source of currency weakness."

"Meanwhile, recent comments from BoT Deputy Governor Piti indicated that the central bank sees room to maintain its accommodative policy stance despite higher energy prices, given manageable inflation pressures and still-uneven domestic growth."

"We maintain a slight cautious near-term view on THB. Higher oil prices remain a concern for Thailand’s external balances, while further weakness in gold could add to currency volatility."

"Daily momentum is flat while RSI rose. Near-term consolidation around recent highs likely."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)