Krungsri expects the baht rate this week to be at 36.50-37.20, and is monitoring the Fed meeting. We expect the MPC to maintain interest rates >> Bank of Ayodhya expects the baht to trade in a range of 36.50-37.20 baht/dollar this week. Watch the Fed meeting on June 11-12, interest rates are expected to remain at -5.25. The Bank of Japan will meet on June 13-14 and the Monetary Policy Committee expects to make a non-unanimous decision to keep interest rates at 2.50%.

Global Markets Group Bank of Ayudhya (BAY) assessed the baht this week as there is a tendency to move in the range of 36.50-37.20 baht/$ compared to last week. The baht closed higher at 36.51 baht/$ after trading in a range of 36.32-36.70 baht/$, while the dollar strengthened against most major currencies except the yen and the Swiss franc last week. In the first period, US bond yields fell following data that raised hopes that the US economy might cool down.

The European Central Bank (ECB) announced its first interest rate cut in five years from a record 4.00% to 3.75%, citing progress in controlling inflation. Even the European Central Bank admits that price pressures may remain above target for another year. Policymakers have given no indication about their next meeting on July 18, as the European Central Bank sees little chance of making further interest rate cuts next month. After wage and inflation data in the services sector came stronger than expected. The market's focus is on the European Central Bank meeting in September.

Meanwhile, US bond yields fell into negative territory at the end of the week while employment numbers came in brighter than expected. The value of the dollar supported again, and foreign investors sold Thai stocks for 6.045 million baht, but there was a net purchase of bonds worth 2.415 million baht.

Krungsri's Global Markets Group commented on the market situation this week. Investors' main focus will be on US inflation data for May. Including the US Federal Reserve meeting on June 11-12, which is expected to keep interest rates at 5.25-5.50% and a new set of interest estimates (Dot Plot) by Fed officials are likely to point to a decline in interest rates. . Interest rates are only 1-2 times higher this year amid the still hot labor market. Additionally, the Bank of Japan is expected to keep interest rates at 0-0.1% at the meeting on June 13-14. Communicating a flexible and gradual slowdown in the purchase of Japanese government bonds.

Due to internal factors, it is expected that the Monetary Policy Committee will not vote unanimously to maintain the interest rate at 2.50% at its meeting on June 12, while economic and inflationary trends remain in line with the MPC’s expectations previously. The general consumer price index (CPI) in May rose by 1.54%. Compared to the same period last year. This is a return to the inflation target range for the first time in 13 months due to energy prices. Fresh vegetables and eggs abounded.

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