After USD/THB rose to a high of 35.60 and pulled back, we highlighted last Monday (21 Aug, spot at 35.28) that “the pullback in USD/THB could extend to 34.95, but any decline is likely part of a 34.95/35.60 consolidation range.” We also highlighted that “a clear break below 34.95 is unlikely.” USD/THB weakened more than expected as it dropped to 34.84 before rebounding. Despite the drop to 34.84, there is no significant increase in downward momentum.

This week, we expect USD/THB to trade in a range, probably between 34.88 and 35.52.