- USD/THB retreated in the Friday session and settled at 36.10, with a loss of 0.36%, as the bears maintain firm control.
- Data released during the week indicates weakness in the US economy, fueling market forecasts for an early interest rate cut by the Federal Reserve.
- Hopes for an early rate cut were offset by the cautious tone from Fed officials.
USD/THB continued to lose ground on Friday despite the cautious tone seen in the latest words from Federal Reserve (Fed) officials.
US economic data released throughout the week revealed signs of a possible economic slowdown. The indicators in question included the April Consumer Price Index (CPI) and retail sales figures, as well as the rise in weekly jobless claims, all of which momentarily pushed the US dollar into a spiral of selling pressure. . However, the dollar regained traction as Fed officials, including Atlanta Fed President Raphael Bostic and his Cleveland Fed counterpart Loretta Mester, reassured markets of their satisfaction with the development of the dollar. inflation scenario and its conformity with the current monetary policy, expressing that they need more confidence to start cutting. However, if the data remains insufficient, the USD could post further losses.
USD/THB technical analysis
The daily RSI for the pair reveals a trend towards negative territory and approached oversold conditions. Simultaneously, the moving average divergence (MACD) histogram presents flat red bars, signaling negative momentum with no substantial change expected for the session.
USD/THB Daily Chart
USD/THB is below its 20-day SMA. This indicates a strong signal of inherent short-term bearish sentiment. Regardless of the short-term bearish view, the pair's ability to hold above its 100-day and 200-day SMAs remains essential to keep the long-term positive trend intact.
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.
