While we expected USD/THB to strengthen last week, we highlighted that “”in view of the overbought short-term conditions, the chance of USD/THB breaking above June’s peak of 35.74 is not high.” USD/THB rose more than expected as it soared to 35.85 before closing slightly higher at 35.69 (+0.11%) on Friday. Conditions remain overbought, and USD/THB is unlikely to strengthen much further.

This week, USD/THB is likely to trade sideways at these higher levels, probably between 35.40 and 35.90.