USD/THB: Near-term top in place? – UOB

FX Strategist at UOB Group’s Global Economics & Markets Research Quek Ser Leang hints at the likelihood that USD/THB could have peaked in recent sessions.

Key Quotes

“Last Monday (26 Sep, spot at 37.85), we highlighted that USD/THB ‘is likely to rally further’. We added, ‘A break of 38.00 seems likely and will shift the focus to 38.25’. While our expectation of further USD gains was correct, we did not anticipate the volatile price action that saw USD rise to 38.46 before plummeting sharply to take out rising trend-line support last Friday.”

“The breach of the trend-line support suggests that USD/THB has likely peaked for the time being. The current price movement is likely the early stages of a consolidation phase and USD is expected to trade between 37.30 and 38.30 for this week.”