USD/THB could challenge and even break above the 35.40 level in the near term, according to Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

The strong surge in USD/THB that sent it to a high of 35.28 came as a surprise (we were expecting it to trade in a range of 34.50/34.90). The rapid increase in momentum is likely to lead to further USD/THB strength towards March’s high near 35.40.

A break of this level is not ruled out, but for this week, the next major resistance at 35.75 is unlikely to come under threat. In order to keep the momentum going, USD/THB must stay above 34.85 (minor support is at 35.05).