After USD/THB dropped sharply to 34.84 and rebounded, we highlighted last Monday (28 Aug, spot at 35.23) that “despite the drop to 34.84, there is no significant increase in downward momentum” and we expected USD/THB to trade in a range between 34.88 and 35.52. Our view was not wrong, even though USD/THB traded in a narrower range than expected (34.89/35.29).

The price movements offer no fresh clues, and we continue to expect USD/THB to trade in a range, likely between 34.90 and 35.35. Looking ahead, if USD/THB breaks clearly above 35.35, it could lead to a sustained advance.