The EUR/THB exchange rate is currently range-bound.
Key drivers include:
- The European Central Bank (ECB) has held interest rates steady but warned that a stronger euro may hinder inflation control, influencing demand for the currency.
- The Eurozone is showing improved economic growth projections, with GDP expected to rise due to fiscal measures in Germany, supporting a stronger euro.
- For Thailand, the Fiscal Policy Office forecasts a strengthening baht due to a weaker US dollar and significant current account surplus.
The near-term trading range for EUR/THB is likely to remain stable, following recent patterns of limited volatility.
Upside risks include an unexpected surge in Eurozone economic data boosting the euro, while downside risks could arise from geopolitical tensions or an escalation in global trade uncertainty, affecting both the euro and baht.
The EUR is currently priced at 36.94, slightly below its 3-month average of 37.4, amid stable trading conditions. Meanwhile, oil prices remain volatile, which may indirectly impact the euro through inflation concerns in Europe.