Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
US Gas Market Poised for Supercycle: Bernstein Analysts 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Fed’s Williams Signals One More Rate Hike Before Year-End 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Fed’s Hammack Says More Data Needed Before Next Rate Move 
ECB May Stop Rate Hikes After December, Capital Economics Says 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Strategy’s STRC Nears $100, Raising Prospects for Major Bitcoin Buys 
Bitmine to Stop Ethereum Buying After Reaching 5% ETH Supply 
Add as a preferred source on Google
Short in USDTHB via 3m NDF are rolled out on account of structural current account improvement, neutral valuations. THB continues to remain top performer within EM Asia, strengthening by 8% this year and outperformance should continue over the coming months on large current account balance, foreign inflows, stable growth, and neutral valuations.
The upward march in the merchandise trade and services balance has resulted in Thailand having the second-largest surplus in EM relative to GDP (10.6% of the GDP over last four quarters) and the fourth-highest in dollar terms. Despite the THB being the top performing currency in the region year-to-date, the REER is only 3% higher than its 10-year average. FX reserves have increased by $23bn since the start of the year, and more steeply since July (by $10bn) on possible dollar buying from BoT.
However, a less aggressive approach can be adopted by the BoT if EM currencies continue to strengthen. The BoT recently talked about measures to monitor large transitions but any policy shifts would be directed at slowing, rather than reversing, the direction of the THB.
Sell USDTHB via 3m NDF The position was rolled in our Trade Monitor yesterday with the following parameters: Sell USDTHB via 3m NDF at 33.12 (spot reference) with the target at 32.10 (3.10%) and stop at 33.45 (-1%). The trading horizon is 2-3 months and it has a negative carry of 6bp/month.
Risks are foreseen to the extent of higher UST yields, CA balance, aggressive BoT, politics: Sharply higher US yields, BoT rate easing or a spike in CPI might reverse debt flows. Worsening local politics, a turn in the goods or services trade balance, or geopolitical tension could hurt THB.
