Quek Ser Leang at UOB Group’s Global Economics & Markets Research suggested USD/THB could extend the range bound theme between 32.85 and 33.29 for the time being.

Key Quotes

“Last Monday (17 Jan, spot at 33.25), we held the view that USD/THB ‘could dip below 33.25’.  We added, ‘the next support at 32.83 is unlikely to come into the picture’. While our view for a weaker USD/THB was not wrong, we did not expect the sharp drop that dipped below 32.83 (low of 32.81). The rebound from the low amid oversold conditions suggest that USD/THB is unlikely to weaken further.”

“For this week, USD/THB is more likely to consolidate and trade sideways between 32.85 and 33.29.”