Markets Strategist Quek Ser Leang at UOB Group notes USD/THB could grind lower in the near term.

Key Quotes

“Last Monday (13 Feb, spot at 34.60 ), we highlighted that ‘35.39 could be a short-term’ and we held the view ‘the pullback from the high has scope to extend but any decline is viewed as a lower trading range of 34.30/34.90’. However, USD/THB traded between 34.39 and 35.19 before closing at 34.83 (+0.99%).”

“USD/THB started this week on a soft note and the underlying tone appears soft and we see room for USD/THB to edge below 34.30. The next support level at 34.00 is unlikely to come under threat. On the upside, a breach of 35.00 (minor resistance is at 34.75) would indicate that the current mild downward pressure has eased.”