FxNews – The USDTHB currency pair recently closed above the 38.2% Fibonacci retracement level, reaching a high of 35.59. However, the RSI indicator is currently hovering in the overbought area, suggesting that a consolidation phase or a trend reversal could be imminent. While the overbought condition raises concerns, the pair’s resilience above the 35.4 support level indicates that the bullish momentum is still intact.
Looking ahead, we anticipate further price appreciation for USDTHB, with the next bullish target potentially being the 50% Fibonacci retracement level. The 35.4 level continues to play a crucial role as the support; if bears manage to push the price below this support, it could invalidate the bullish outlook.
A Positive Trend in Thailand CCI
Bloomberg – Recent data from the University of the Thai Chamber of Commerce reveals a notable uptick in Thailand CCI. In November 2023, the consumer confidence index reached 60.9, marking its highest point in nearly three years. This increase is part of a consistent upward trend, as this is the fourth consecutive month the index has risen, up from 60.2 in the preceding month. This surge in consumer morale can be attributed to several key government actions. One of the most significant has been the reduction in energy costs, a move that has provided tangible relief to consumers. Additionally, the government has implemented more lenient visa policies for tourists, which has had a positive ripple effect on consumer sentiments.
Tourism continues to be a cornerstone of the Thai economy. Despite a slight downward revision in expectations – from 30 million to 28 million visitors – the tourism sector remains robust. This influx of foreign tourists not only boosts local businesses but also plays a vital role in the overall economic health of the country.
The rise in consumer confidence is a positive sign for Thailand’s economy. Higher consumer morale often leads to increased spending, which can stimulate various sectors of the economy. The tourism industry, in particular, benefits from this increased confidence, as it encourages more spending by both locals and tourists. However, it’s important to maintain a balance. While increased consumer spending can drive economic growth, it should not lead to excessive borrowing or overspending, which could have long-term negative effects.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.