EUR/THB Outlook:
Slightly positive, but likely to move sideways as the rate is above its recent average and near mid-range levels without a strong driver.
Key drivers:
• The European Central Bank has kept rates steady, suggesting the euro's support may wane amid softer inflation and weak economic data.
• Oil prices have risen, with recent data showing volatility, which could bolster the Thai baht but might also create mixed effects on the euro.
• Thailand's shipping industry is raising concerns over the strength of the baht, which may prompt monetary intervention to stabilize the currency.
Range:
EUR/THB is likely to drift within its recent range, continuing to reflect the fluctuations seen over the past three months.
What could change it:
• Upside risk: A stronger-than-expected recovery in Eurozone economic indicators might lift the euro.
• Downside risk: If the Bank of Thailand's intervention fails or economic concerns persist, the baht could strengthen further, applying pressure on the euro.
