USD/THB: A drop to 33.81 should not be ruled out – UOB

FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research suggested USD/THB could attempt a move to 33.81 once 34.00 is cleared.

Key Quotes

“Last Monday (23 May, spot at 34.31), we highlighted that ‘risk for USD/THB is still on the downside but the solid support at 34.00 may not yield so easily’. Our view was not wrong as USD/THB dropped to 34.07, rebounded before easing off. At the time of writing, USD/THB is trading at 34.05, not far above 34.00.”

“Shorter-term downward momentum has improved and a break of 34.00 would not be surprising and could potentially trigger a rapid decline to 33.81. Overall, only a breach of 34.26 would indicate that the current downward pressure in USD/THB has eased.”