USD/THB: There is still room for extra gains – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted USD/THB could advance further in the near term.

Key Quotes

“Last Monday (15 Aug, spot at 35.50), we highlighted ‘35.06 is likely a short-term bottom’ and we expected the rebound in USD/THB to ‘extend to 35.80’. Our view turned out to be correct as USD/THB rose to 35.81 last Friday before extending its advance today.”

“Further USD/THB strength appears likely even though overbought conditions suggest that 36.36 is unlikely to come into the picture, at least for this week. On a shorter-term note, 36.05 is already a strong resistance level. On the downside, a breach of 35.55 would indicate that the current upward pressure has eased.”