[ad_1]
The baht appreciates, leaving an important support line. After the Fed insists on buying bonds. Until the economy returns to normal
Foreign Exchange Department Bangkok Bank reports that the movement of the foreign exchange market between December 14-18, 2020, the Thai baht market opens on Monday morning (12/14) at the level of 30.06 / 08 baht / American dollar. Stable since the close of the previous Wednesday (9/12) at 30.08 / 09 baht / US dollar. During the last long vacation
The US dollar was still moving within the mark. By fluctuating slightly Investors have chosen to sell the safe-haven currency and acquire riskier assets due to the advance of the COVID-19 vaccine. With reports from officials of the United States Food and Drug Administration (FDA) that the vaccine against the COVID-19 virus. Of Moderna Company is efficient and safe AND eligible to be approved as an emergency
The report noted that the FDA would formally approve the COVID-19 vaccine. Modern in the early days
Investors are also selling dollars, as there is hope that the US Congress may soon launch a stimulus package. Republicans and Democrats agreed to split the $ 9.08 billion stimulus package into two bills to increase the chances of it passing by Congress. The first issue will have a credit line of $ 7.48 billion. To cure the unemployed and small businesses affected by COVID-19. While the other will have a grant of $ 1.60 billion to help the states.
Furthermore, on Wednesday night (12/16) the US dollar fell one more level. It is a new level of weakness in the second half of the second semester, after the Federal Reserve (Fed) resolved to keep interest rates at 0.00-0.25% and said that the Fed will continue to use all the tools to support its recovery. Economy to have full employment potential And inflation rose 2% above the target level.
The Fed pledged to continue buying bonds in line with quantitative easing (QE) totaling $ 1.2 billion a month.
As for the key economic figures that were announced this week. It also shows that the economy is still in a slow state. By the United States Department of Commerce stated that November retail sales fell 1.1%, the fall of the second month. Marquit stated that December Month of the US Primary Manufacturing Purchasing Managers Index (PMI) fell to 56.5, the lowest in two months, while the preliminary services PMI index last month. Dec. It fell to 55.3, the lowest level in three months.
Due to the movement of the baht during this week At the beginning of the week, the baht ranged in a narrow range between 30.00-30.10 baht / US dollar. There is still no new factor in the movement of the baht. Although investors are on the lookout for the COVID-19 epidemic. That the outbreak in northern Thailand began to spread to different regions of the country
However, the number of infections still indicates there has not been a widespread epidemic. Or it needs to be monitored until the country closes again However, on Wednesday night (12/16) after the announcement of the Fed’s approach to the injection of money. On Thursday (12/17), the baht strengthened at the key support level at 30.00 baht / US dollar, which was the strongest level since late 2019.
Ms. Chantawan Sucharitakul, Assistant Governor Lines of Communication and Corporate Relations The Bank of Thailand (BOT) revealed that the BOT does not have a policy to intervene in the currency to create an international business advantage. And that Thailand is on the US Treasury Watch List. It is negligible for companies that trade with the US What business sectors in Thailand and the United States? Continue doing business as usual
And such an assessment does not affect the implementation of Bank of Thailand policy to maintain economic and financial stability in the country Including the maintenance of exchange rate stability This is in line with the functions of the central bank and the need of the situation . During the past week, the baht moved within the range of 29.76-30.10 baht / US dollar. Before the market close on Friday (12/18) at 29.77 / 79 baht / USD.
Due to the movement of the euro The euro opened on Monday morning (12/14) at the level of 1.2119 / 20 USD / EUR. Slightly weaker since Wednesday’s close (9/12) at 1.2126 / 27 USD / EUR.
During this week The euro is likely to appreciate after the depreciation of the US dollar. The euro is also supported by the recent Brexit negotiations in the UK. Britain’s separation from the EU (Brexit) revealed the completion of a trade agreement between Britain. And the European Union There is still a possibility
He said that negotiations between the two sides are still ongoing at this time. Coordinate different opinions on fishing issues. And regulations that will apply to various companies fairly
Investors are also hopeful that the COVID-19 epidemic in Europe will come to an end after European Commission officials said the EU could approve the vaccine. The Pfizer and biotech COVIDs were reached on December 23, after the United States and Britain began vaccinating people.
For the economic figures during the past week The figures of the index of purchasing managers of the countries in the sectors of manufacturing and services were higher than the expectations of the market. During the week, the euro moved within the mark. 1.2112-1.2273 USD / Euro And closed on Friday (12/18) at 1.2256 / 58 USD / EUR.
Due to the movement of the yen The yen opens on Monday morning (12/14) at the level of 104.03 / 04 yen / US dollar. It remained flat since the close on Wednesday (9/12) at 104.06 / 08 yen / US dollar. During this week, the yen strengthened after the depreciation of the US dollar. The appreciation after the Fed announcement on Wednesday night (12/16) continued through Thursday (12/17) at 102.90 yen / US dollar. Which was the strongest since March on Friday (12/18).
The Bank of Japan (BOJ) adopted a particularly relaxed monetary policy resolution at its meeting. This is in line with market forecasts, and the BOJ insists on measures to mitigate the funding disruption. This includes financing commercial banks at a 0% interest rate so they can make loans to affected businesses.
It has also expanded programs to support private sector financing for another 6 months until the end of September next year due to COVID-19. That spread again Causing the economy to face uncertainty During the week, the yen moved within the mark between 102.90-104.15 Yen / US dollar And closed on Friday (12/18) at 103.44 / 46 yen / US dollar.
[ad_2]
