USD/THB seems to have moved into a consolidative phase within the 36.33-36.75 range for the time being, according to Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Tuesday (12 Jul, spot at 36.24), we highlighted that there is room for USD/THB to strengthen further but we were of the view that ‘any further advance is likely limited to a test of 34.60’. We indicated that ‘the major resistance at 35.00 is not expected to come into the picture’. The anticipated advance exceeded our expectations as USD/THB rose to a high of 36.74 on Friday (15 Jul).”

“Overbought conditions coupled with moderating upward momentum suggests that USD/THB is unlikely to advance much further. For this week, USD/THB is more likely to trade between 36.33 and 36.75.”