Poon said the baht is likely to fluctuate and weaken as the dollar is strengthening and investors are concerned that the Chinese government may enforce more lockdown measures.He expects the baht’s support level in the short term to be 35.90 to 36, and the resistance level to be at 36.5.

Poon said the dollar might “invert” if the US Federal Reserve does not signal it would go in for a heavy rate increase in July.

He also urged investors to beware of the currency market’s volatility before and after information on US inflation has been revealed.

If the US inflation is higher than expected, the Federal Reserve may signal an interest rate increase this year, which will strengthen the dollar.

The market may also fluctuate as investors are waiting for the latest ZEW Economic Sentiment indicator. If it shows that the European economy is worse than expected, then it may pressure the euro and help the dollar strengthen.