BANGKOK, Thailand – The Thai baht opened on September 3, at 34.19 baht per U.S. dollar, slightly stronger than the previous closing of 34.22 baht per dollar. Poon Panichphibool, a market strategist at Krungthai GLOBAL MARKETS, noted that the baht’s movement has been sideways in a range of 34.17 to 34.23 baht per dollar since last night. This is partly due to the U.S. financial markets being closed on Monday for Labor Day, leading to subdued movements in both the U.S. dollar and gold prices.
Market participants are eagerly awaiting significant U.S. economic data, particularly the ISM Manufacturing PMI for August, set to be released on Tuesday, and the U.S. employment report due on Friday. These reports are expected to influence asset-holding decisions.
For today, the focus will be on the ISM Manufacturing PMI report. Analysts predict the index will likely remain below 50, indicating continued contraction in the U.S. manufacturing sector. Investors will pay close attention to the Employment Sub-Index within the PMI to gauge the employment trend in the U.S. manufacturing sector for August.
In Europe, market players are also waiting for statements from European Central Bank (ECB) officials to assess the future direction of ECB monetary policy.
Regarding the baht’s outlook, it is expected to move sideways around the 34.20 baht per dollar level until new factors emerge. However, the baht might face slight depreciation pressures due to gold-buying flows as gold prices hover near short-term support levels. Additionally, foreign investors may continue to take profits from Thai assets, particularly Thai stocks, as seen over the past two trading days. Conversely, the baht could receive some support from exporters selling U.S. dollars.
The key resistance levels for the baht are expected at 34.30 and 34.50 baht per dollar, while support levels are at 34.10 and 34.00 baht per dollar.
Market participants should be cautious of potential volatility when the ISM Manufacturing PMI is released, as this report has historically caused the baht to fluctuate by approximately 0.2% on average in the past year.
