USD/THB: A potential drop to 34.58 appears on the cards – UOB

A potential retracement of USD/THB to the 34.58 level should not be ruled out in the near term, argues Markets Strategist Quek Ser Leang at UOB Group.

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USD/THB dropped sharply to low of 34.58 last Wednesday before ending the week on a weak note at 34.85 (-1.32%). Downward momentum has increased, albeit not much.

This week, as long as USD/THB stays below 35.22 (minor resistance is at 35.00), it could dip below 34.58 before a more sustained rebound is likely. The major support at 34.08 is unlikely to come under threat.