USD/THB faces some near-term consolidation – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research notes USD/THB is seen sticking to the rangebound theme within 32.20/32.80.

Key Quotes

“Last week, we expected USD/THB to weaken further but we were of the view that ‘the next major support at 32.26 could be out or reach’. The subsequent USD/THB weakness exceeded our expectations as it dropped sharply to 32.18 before rebounding.”

“Shorter-term downward momentum is beginning to wane and this coupled with oversold conditions suggest that USD/THB has likely moved into a short-term consolidation phase. In other words, SGD/CNH is likely to trade sideways for today, likely within a 32.20/32.80 range.”