CAD/THB Outlook: The outlook for CAD/THB is slightly positive, but likely to move sideways, as it is above its recent average and lacks a clear driving force.
Key drivers:
• Rate gap: The Bank of Canada's maintained interest rate supports CAD, while the Bank of Thailand's recent interest rate cut may weaken THB.
• Risk/commodities: With oil prices significantly above average, the Canadian dollar benefits from its status as a commodity currency, supporting its strength against the THB.
• One macro factor: The recent trade agreement between Canada and China may enhance economic prospects for CAD, boosting its appeal in the currency market.
Range: CAD/THB is expected to hold within its recent 3-month range, showing stability without significant movement in either direction.
What could change it:
• Upside risk: A sustained increase in oil prices could further bolster the CAD against the THB.
• Downside risk: A significant deterioration of Canada's economic indicators or renewed trade tensions with the U.S. may negatively impact the CAD.
