- USD/THB is trading around 36.11, down 0.15% on Monday's session.
- Fed officials urge caution against premature easing, despite weakness in some recent data.
- The May FOMC Minutes, April S&P Global PMIs and May Durable Goods numbers will be the top releases this week.
The USD/THB pair is trading slightly lower on Monday, having fallen to a low of 36.05 earlier in the session, and has managed to trim most of the daily losses. The dollar remains firm, buoyed by cautious comments from Federal Reserve (Fed) officials, who are reluctant to ease monetary policy early.
Fed officials reiterated their reluctance on premature easing on Monday, citing the fact that it is too early to consider recent weak inflation data as evidence of disinflation. The odds of a Fed cut through September are around 35%, but officials and mid-level data this week could change those odds.
Investors appear to be keeping an eye on the Fed's speeches this week and the May FOMC Minutes, due out this Wednesday, in hopes that the direction of the outlook for the economy will become clearer. Fed. May S&P Global numbers and weekly jobless claims numbers will be released on Thursday, followed by April durable goods numbers on Friday.
USD/THB technical analysis
On the daily chart, the USD/THB RSI is in negative territory, suggesting bearish momentum. At the same time, the moving average convergence (MACD) histogram shows red bars, indicating negative momentum. However, since the histogram bars are flat, they suggest a decrease in selling pressure and the possibility of a decline in the current downtrend.
USD/THB Daily Chart
Looking at the simple moving average (SMA), the pair is below the 20-day and 100-day SMA. However, it is worth noting that in Monday's session, buyers defended the 200-day SMA at 35.83. This reveals resistance, potentially impeding the bearish narrative and may trigger bullish sentiment if it holds. This combination reveals that the pair is in a downtrend, but if the bulls continue to hold out, losses could be limited.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
