USD/THB still faces some consolidation – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research sees USD/THB navigating within the 33.20-33.70 range for the time being.

Key Quotes

“We highlighted last Monday (11 Oct, spot at 33.79) that ‘upward momentum has waned further and the chance for USD/THB to break the rising trend-line support has increased’. We added, ‘a break of the trend-line would indicate that the USD/THB strength from early September has run its course’.”

“While our view for a break of the rising trend-line was not wrong, we did not anticipate the subsequent sharp sell-off that sent USD/THB plummeting to 33.15. Note that 33.15 was close to the 55-day exponential moving average.”

“The rebound from 33.15 amid oversold shorter-term conditions indicates that USD/THB is unlikely to weaken further. For this week, USD/THB is more likely to trade between 33.20 and 33.70.”