Baht likely to be in a strengthening trend

The Thai currency would move between Bt30.98 and Bt31.18 on Monday and Bt30.90 and 31.40 this week, Jitipol Puksamatanan, head of markets strategy at SCB Securities, said.
This week, the strategist advised investors to monitor the mobement of the euro and yen. Moreover, the market will focus on economic numbers as well, despite the weakening of the dollar being seen as the market’s main trend.
However, he added that the market could be in a risk-off state, strengthening the US currency. The dollar indexes this week would move between 91.5 to 93 points from the present 92.3 points.
In Thailand, the baht strengthened after the dollar weakened. The strategist suggested that investors monitor Thailand’s current account, which has been stable for four months.
He explained that the baht could continue strengthening if the current account overbalanced over $1 billion, since the account shows that the baht had passed its lowest point for this year.
On Tuesday (September 1), the ISM Manufacturing purchasing managers index (PMI) will be announced, while ISM non-manufacturing PMI will be revealed on Thursday. Also, the US non-farm payrolls will be announced this Friday.