The market bias for the CAD to THB exchange rate is currently bearish.
Key drivers include:
- The interest rate differential remains narrow, with the Bank of Canada's policy rate at 2.25% while global inflation concerns persist.
- Oil prices have fluctuated, with recent highs around $62, affecting the CAD given its status as a major oil exporter.
- Economic indicators show Canada's manufacturing sector in contraction, reflecting soft growth signals.
In the near term, the CAD to THB is expected to trade within a range influenced by these dynamics.
An upside risk could stem from a stronger-than-expected recovery in Canadian manufacturing or improved oil prices. Conversely, a downside risk may arise from a continued strong baht against a weak U.S. dollar and further easing of Thailand's interest rates, which could dampen demand for the CAD.