USD/THB continues to lose ground due to weak US data

• USD/THB fell to 36.20 on Thursday with heavy losses during the European session.
• Signs of economic slowdown are revealed in the US, as Initial Jobless Claims exceeded expectations and the Philadelphia Fed manufacturing survey came in weak.
• Given the weak US economic data, the likelihood that the Fed will cut rates sooner rather than later has increased.

The USD/THB pair is trading lower on Thursday with losses of 0.35% around 36.20. Weak initial jobless claims and a reduction in the Philadelphia Fed's manufacturing survey following the weaker-than-expected Consumer Price Index (CPI) appear to be driving the USD's decline amid growing dovish bets on the Federal Reserve ( Fed).

Initial Jobless Claims for the week ending May 3 hit a high of 222,000, exceeding forecasts and marking an upward revision from the previous week's numbers of 232,000. Continued economic weakness may increase pressure on the Federal Reserve (Fed) to cut rates sooner. However, markets continue to see the start of easing in September, but if the data continues to beat expectations, the Fed could consider a cut in July.

USD/THB technical analysis

On the daily chart, the RSI shows a decline from positive to negative territory in the last session, now approaching oversold conditions. This indicates that sellers currently dominate the market. Concurrently, the moving average convergence divergence (MACD) histogram details rising red bars, indicative of increasing negative momentum.

The position of the USD/THB pair in relation to its simple moving averages (SMAs) shows that it is positioned below the 20-day average but above the 100- and 200-day averages. This suggests that although the short-term outlook is negative, the medium to long-term outlook remains positive, as long as buyers defend these levels.

USD/THB Daily Chart