Poon Panichpibool, Market Strategist at Krungthai GLOBAL MARKETS, Krung Thai Bank Public Company Limited (SET: KTB), revealed that Thai baht volatility has heightened once again amid ongoing uncertainties surrounding the U.S.-China trade war and the market’s shifting sentiment toward Federal Reserve (Fed) interest rate cut prospects. The bank advises market participants to consider Options strategies or the use of local currencies to enhance efficiency in managing foreign exchange risk.
The baht is likely to remain in a depreciating trend until it can clearly surge past the support range of THB 32.40–32.50 per US dollar. According to trend-following strategies, if the baht continues to weaken, key resistance can be met around THB 32.80–32.85 per dollar, with THB 33.00 mark serving as a critical resistance level to closely monitor. Conversely, if the baht appreciates significantly, important support zones will be at THB 32.30 and further at THB 32.00 per US dollar.
Poon noted that while the baht has appreciated more than previously expected—reducing the currency’s downward momentum—risks of further depreciation and elevated volatility remain. He attributed this largely to the unpredictable gold market, which is prone to sharp swings. Such volatility could persist, particularly if market concerns about the U.S.-China trade conflict begin to ease, he added.
Further, if gold prices enter a consolidation phase or correct sharply, this could help slow the baht’s appreciation or even pressure it to weaken. Gold prices may gain support in cases where the financial market is disappointed by listed companies’ earnings reports and moves into risk-off mode once again.
