- USDTHB: moving in the range 36.92-36.97 this morning supportive level at 36.80 resistance level at 37.00
· SET Index: 1,373,3 (-0.22%), 8 May 2024
· S&P 500 Index: 5,187.7 (-0.00%), 8 May 2024
· Thai 10-year government bond yield (interpolated): 2.78 (+2.69 bps), 8 May 2024
· US 10-year treasury yield: 4.48 (+1.00 bps), 8 May 2024
- US wholesale inventories drop by unrevised 0.4% in March
- German industrial output falls less than expected in March
- Japan real wages fall in March, marking 2 years of decline
- Dollar gains on rate outlook, yen weakens for third day
US wholesale inventories drop by unrevised 0.4% in March U.S. wholesale inventories fell in March, confirming that inventory investment was a drag on economic growth in the first quarter. The Commerce Department's Census Bureau that wholesale inventories fell 0.4% as estimated last month. Stocks at wholesalers rebounded 0.2% in February. Economists polled by Reuters had expected that inventories, a key part of gross domestic product, would be unrevised. Inventories dropped 2.3% on a year-on-year basis in March. Private inventory investment cut 0.35% percentage point from GDP growth in the first quarter, the government reported last month. It was the second straight quarter that inventories subtracted from GDP. The economy grew at a 1.6% annualized rate in the January-March quarter, the slowest pace in nearly two years.
German industrial output falls less than expected in March German industrial production declined in March, although less than expected thanks to construction. Industrial production fell by 0.4% compared to February, a smaller decline than the 0.6% fall predicted by analysts polled by Reuters. The less volatile three-month on three-month comparison showed production was 1.0% higher from January to March than in the previous three months. Production increased by 1.7% in February on the month, less than the 2.1% before the revision of the data. Demand in manufacturing remains weak. German industrial orders fell by 0.4% month-on-month in March, on a seasonally and calendar adjusted basis, data showed on Monday. In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January, a separate survey of the Ifo Institute showed.
Japan real wages fall in March, marking 2 years of decline Japan's inflation-adjusted real wages in March fell 2.5% from a year earlier, marking declines for two straight years, labor ministry data showed. The pace of declines accelerated from the previous month's 1.8% drop as the rising costs of living outpaced nominal wages, the data showed. Japan is seeing early signs of achieving a positive cycle of rising wages and inflation. Workers' earnings, however, are still lagging behind rising costs, underscoring the challenges policymakers face in getting companies to boost salaries. Some economists say they expect real wages to turn positive at some point in the 2024/25 fiscal year. On the other hand, consumer prices in March rose 3.1% from a year earlier, slowing slightly from 3.3% in February, hovering higher above the Bank of Japan's 2% inflation target and price gains.
Dollar gains on rate outlook, yen weakens for third day The 10-year government bond yield (interpolated) on the previous trading day was 2.78, +2.69 bps. The benchmark government bond yield (LB31DA) was 2.75, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.48, +1.00 bps. USDTHB on the previous trading day closed around 36.98. Moving in a range of 36.92-36.97 this morning. USDTHB could be closed between 36.80-37.00 today. The dollar gained as investors continued to bet on the U.S. economy outperforming peers and was higher for the third day against the Japanese yen, keeping investors wary of the risk of intervention from Tokyo. In Europe, the Swedish crown came under pressure after the central bank cut interest rates and said it expected two more cuts this year, while the pound was stuck in negative territory ahead of a Bank of England meeting on Thursday. The move in Sweden was a reminder that dollar is likely to remain strong as long as other central banks cut rates before the U.S. Federal Reserve. The yen remained front of mind for currency traders as Japanese officials issued a stronger warning over the impact of the weak currency on the economy.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
