- The recent US PPI data for April was in line with expectations.
- Jerome Powell's cautious comments on inflation and strict policy measures instill a sense of uncertainty around the USD.
- All eyes are on Wednesday's US CPI numbers.
USD/THB posted heavy losses on Tuesday, facing the mixed influences of a robust US economy and the cautious stance of the Federal Reserve (Fed). The US Producer Price Index (PPI) showed no surprises, as markets prepare for Wednesday's US Consumer Price Index (CPI) report.
Turning to US data, April PPI figures reinforced the resilience of the US economy, with a year-on-year increase of 2.2%, in line with market forecasts. Despite these strong indicators, caution prevails as Fed Chair Jerome Powell remains vigilant on inflation trends and underscores the need to commit to keeping rates higher for longer. Markets are betting that the bank will begin to cut rates in September and that a cut is already expected in November. However, the result of the CPI could change these forecasts.
USD/THB technical analysis
The daily RSI of the USD/THB pair recently recorded a level of 45 points. This RSI reading falls into negative territory, suggesting an elevation in selling momentum. The moving average divergence (MACD) histogram shows red bars, indicating increasing negative momentum for the USD/THB pair. The amalgamation of the negative RSI and the MACD with a negative trend implies a dominance of sellers in the market.
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.
