USD/THB seen rangebound near-term – UOB

UOB Group’s FX Strategists see USD/THB navigating within the 31.25-31.52 range in the next weeks.

Key Quotes

“We highlighted last Monday (17 May, spot at 31.45) that ‘upward momentum is beginning to build and a break of the late April peak of 31.49 would not be surprising’.”

“We added, ‘in view of the nascent build-up in momentum, the year-to-date high at 31.60 is unlikely to come into the picture’.”

“While our view was not wrong as USD/THB broke 31.49 and rose to 31.52, it retreated quickly and subsequently traded mostly sideways. The build-up in momentum has eased and for this week, USD/THB is expected to consolidate and trade between 31.25 and 31.52. Looking further ahead, the current consolidation is expected to be resolved by another up-leg in USD/THB.”