USD/THB faces extra consolidation near term – UOB

In the opinion of Markets Strategist Quek Ser Leang at UOB Group, USD/THB is now seen trading within the 34.00-35.00 range in the near term.

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We indicated last Monday that USD/THB could consolidate for few days before dropping to 34.42 later on. We did not anticipate the spike in volatility as USD/THB plunged to a low of 33.75 before rebounding quickly. The sharp drop appears to be overdone and we do not expect USD/THB to weaken. This week, USD/THB is more likely to trade in a range, probably between 34.00 and 35.00.