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Quek Ser Leang at UOB Group’s Global Economics & Markets Research suggested USD/THB could find strong support in the 31.13 level.

Key Quotes

“We highlighted last Monday (24 May, spot at 31.39) that USD/THB is ‘expected to consolidate and trade between 31.25 and 31.52’. USD/THB subsequently drifted to a low of 31.23 (high has been 31.40).”

“The weakened underlying tone suggests USD/THB could continue to drift lower this week but a sustained decline below the 55-day exponential moving average (currently at 31.13) is unlikely and the next support at 31.04 is not expected to come under threat.”

“Resistance is at 31.33 but only a breach of 31.40 would indicate that the current mild downward pressure has eased.”