USD/THB sees red on quiet Monday, eyes on May's FOMC minutes

Source Fxstreet
May 20, 2024 20:24
  • USD/THB trades at around 36.11, marking a 0.15% decrease in Monday's session.
  • Fed officials ask for caution on premature easing, despite some recent data weakness.
  • May’s FOMC minutes, April’s S&P PMIs, and Durable Goods figures from May will be the highlights this week.

The USD/THB pair is trading mildly down on Monday after falling to a low of 36.05 earlier in the session and managed to clear most of the daily losses. The USD is holding its ground, driven by cautious comments from the Federal Reserve (Fed) officials who are reluctant to loosen monetary policy prematurely.

Fed policymakers reiterated their reluctance towards premature easing on Monday, referencing that it is too soon to consider as evidence of disinflation the recent soft inflation data. The odds of a cut by the Fed until September is bookmarked at around 35% but officials and mid-tier data this week may change those odds.

Investors seem to be waiting for additional delivery of Fed speeches this week and for May's Federal Open Market Committee (FOMC) minutes slated for release this Wednesday, hoping for greater clarity on the direction of the Fed’s outlook. On Thursday, May’s S&P readings and weekly Jobless Claims will be looked upon as well as Friday’s Durable Goods figures from April.

USD/THB technical analysis

Examining the daily graph, the Relative Strength Index (RSI) of the USD/THB is hovering in the negative territory, suggesting a hint of bearish momentum. Simultaneously, the Moving Average Convergence Divergence (MACD) histogram is displaying red bars, indicating a negative momentum. Yet, as the histogram bars are flat, these suggest a decreasing selling pressure and the potential for a lessening in the current bearish bias.

USD/THB daily chart

Regarding the Simple Moving Average (SMA), the pair is below the 20, 100-day SMAs. However, it is noteworthy that in Monday's session, buyers defended the 200-day SMA at the 35.83 mark. This reveals resilience, potentially impeding the bearish narrative and may trigger a bullish sentiment if sustained. This combination reveals that the pair is in a bearish trend but if the bulls remain resilient, the losses might be limited.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Curve Attack Causes Steep Decline in CRV Price, Will it Trigger a Cryptocurrency Market Crash?The Curve event has caused a loss of 52 million US dollars, but the market has not collapsed unless the 300 million CRV mortgaged by the founder is liquidated!
Author  Mitrade
The Curve event has caused a loss of 52 million US dollars, but the market has not collapsed unless the 300 million CRV mortgaged by the founder is liquidated!
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Apple sets a string of records and soars 10% in 2 sessions: 21% correction in sight?Investing.com - After breaking through the $200 barrier for the first time in its history on Tuesday, on a day that saw the share price rise by more than 7%, Apple Inc (NASDAQ:AAPL) continued its reco
Author  Investing.com
Investing.com - After breaking through the $200 barrier for the first time in its history on Tuesday, on a day that saw the share price rise by more than 7%, Apple Inc (NASDAQ:AAPL) continued its reco
goTop
quote