- USDTHB: moving in the range 31.105-31.115 this morning, supportive level at 31.00 resistance level at 31.25
- SET Index: 1,269.7 (+1.39%), 22 Dec 2025
- S&P 500 Index: 6,878.5 (+0.6%), 22 Dec 2025
- Thai 10-year government bond yield (interpolated): 1.698 (+0.05 bps), 22 Dec 2025
- US 10-year treasury yield: 4.17 (+1.0 bps), 22 Dec 2025
- Japan signals ‘free hand’ to act in FX markets
- Q3 UK GDP unchanged at 0.1%, private sector gains offset government slump
- China holds December Loan Prime Rates steady as expected
- BoT holds inflation target at 1–3% for 2026
- Dollar edges down in headline-light session
Japan signals ‘free hand’ to act in FX markets
Japan signaled it has a “free hand” to act decisively against FX moves that diverge from fundamentals, with Finance Minister Satsuki Katayama issuing her strongest warning yet to speculators after the yen weakened despite higher interest rates. Separately, top currency diplomat Mimura said he is seeing increasingly one-sided, rapid moves and reaffirmed readiness to respond to excessive volatility.
Q3 UK GDP unchanged at 0.1%, private sector gains offset government slump
The UK economy posted a modest 0.1% quarter-on-quarter growth in Q3 2025, matching earlier estimates, though the composition of growth showed a shift toward the private sector. Government investment was sharply revised down to a 1.8% decline from an initial 3.6% rise, while business investment gained 1.5% instead of the previously reported 0.3% fall. Consumer spending edged up 0.3% versus 0.2% initially. Q2 GDP was also revised down from 0.3% to 0.2%, underscoring weakening momentum, with the economy expanding in only two of the past seven months.
China holds December Loan Prime Rates steady as expected
The PBOC kept its one-year LPR at 3.0% and five-year LPR at 3.50%, matching expectations and marking the seventh straight month without a change, though both rates remain at record lows. The PBOC is widely expected to cut rates in early 2026 to support the property sector and boost domestic spending, though larger reductions could pose risks to Chinese banks.
BoT holds inflation target at 1–3% for 2026
According to Bank of Thailand Governor Vitai Ratanakorn, Thailand will maintain its 2026 inflation target at 1–3%, despite currently facing negative headline inflation. The central bank aims to restore positive inflation quickly while avoiding deflation, though headline inflation is not expected to return to the target range until 2027, with lingering oil price effects cited as a key factor.
Dollar edges down in headline-light session
The 10-year government bond yield (interpolated) on the previous trading day was 1.698, +0.05 bps. The benchmark government bond yield (LB353A) was 1.675, -0.87 bps. Meantime, the latest closed US 10-year bond yields was 4.17, +1.0 bps. USDTHB on the previous trading day closed around 31.29, moving in a range of 31.105 – 31.115 this morning. USDTHB could be closed between 31.00 – 31.25 today. The US dollar weakened on Monday amid a quiet, headline-light session and thin liquidity as markets approach the Christmas holiday. Attention now turns to Tuesday’s releases of US quarterly GDP, PCE inflation, and Consumer Confidence data. G10 currencies broadly advanced against the soft Dollar, with the British pound leading gains, while the Canadian dollar lagged but still strengthened versus the greenback. The standout within G10 was the Japanese yen, following renewed verbal warnings from Japan’s top currency diplomat Mimura, who noted increasingly one-sided and rapid FX moves, reiterated readiness to act against excessive volatility, and expressed concern over recent currency fluctuations. For the euro, remarks from ECB’s Kazimir, Vujcic, and Schnabel had limited impact. Vujcic said the next deposit rate move could be in either direction, while Schnabel played down the likelihood of a rate hike in the near term, noting that any eventual tightening remains some way off.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
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