Bangkok: Market participants are closely monitoring the upcoming Monetary Policy Committee (MPC) meeting on December 17th, alongside domestic political developments and the Thai-Cambodian border situation.
According to Thai News Agency, the Kasikorn Research Center has highlighted these events as pivotal factors influencing market dynamics this week.
Last week, the Thai baht strengthened to 31.55 baht per dollar, marking its highest level in nearly 4.5 years. This strengthening aligns with a broader trend among Asian currencies, as the US dollar faces selling pressure amid expectations for further interest rate cuts by the Federal Reserve in 2026. Kasikorn Bank forecasts that the Thai baht will trade within a range of 31.40-32.00 baht per US dollar this week, with key influences including the results of the MPC meeting and statements from Federal Reserve officials.
In addition to domestic political factors, foreign fund flow direction, Asian currency trends, and global gold prices are critical components to monitor. Significant US economic data will also come under scrutiny, including October retail sales, non-farm payrolls, and the consumer price index. Market watchers are also awaiting outcomes from central bank meetings in England, the Eurozone, and Japan, alongside economic data from China.
The Thai stock market experienced fluctuations last week, impacted by concerns over the Thai-Cambodian border situation and domestic political uncertainty. Although the Federal Reserve cut its policy interest rate as expected, it did not signal further cuts clearly, prompting foreign investors to sell Thai stocks by the week's end. Despite regional stock market support, political developments and border issues have prompted investor caution.
Kasikorn Securities Co., Ltd. projects that for the week of December 15-19, the Thai stock index will find support at 1,245 and 1,230 points, with resistance levels at 1,285 and 1,305 points. Kasikorn Research Center emphasizes the importance of monitoring the MPC meeting, domestic political challenges, and foreign capital flows. Additionally, international economic events, including central bank meetings and economic data releases from major global economies, will play a significant role in shaping market outcomes.