FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted USD/THB is poised to extend the upside in the near term.
“Last Monday (22 Aug, spot at 35.85), we highlighted ‘further USD/THB strength appears likely even though overbought conditions suggest that 36.36 is unlikely to come into the picture’. Our view was not wrong as USD/THB subsequently rose to 36.34 before dropping to 35.78. USD/THB rebounded strongly from the low and today (29 Aug), it out 36.36. The rapid improvement in momentum suggests USD/THB could strengthen further.”
“That said, July’s high at 36.95 is unlikely to come into the picture for this week (there is another resistance level at 36.70). Overall, USD/THB is expected to trade on a firm footing as long as it does not move below 35.90 (minor support is at 36.10).”