- USDTHB: moving in the range 32.80 – 32.84 this morning, supportive level at 32.70 resistance level at 33.00
- SET Index: 1,440.85 (+0.49%), 18 Mar 2026
- S&P 500 Index: 6,624.70 (-1.36%), 18 Mar 2026
- Thai 10-year government bond yield (interpolated): 2.056 (-5.83 bps), 18 Mar 2026
- US 10-year treasury yield: 4.26 (+6.0 bps), 18 Mar 2026
- Middle East tensions escalate, infrastructure targeted
- Fed holds rates steady, Powell signals hawkish tone
- US PPI rises faster than expected in February
- Thai court accepts ballot challenge, threatening election
- Dollar firms on hawkish Powell, Middle East energy disruptions, and strong US PPI
Middle East tensions escalate, infrastructure targeted
Iran and Israel have escalated attacks on energy infrastructure, spreading tensions across the Gulf and raising global energy risks. Israel struck Iran’s South Pars gas field and associated facilities, while Iran targeted sites in Qatar, Saudi Arabia, and the UAE, heavily damaging Qatar’s Ras Laffan LNG complex and forcing Abu Dhabi to suspend operations at the Habshan gas hub. Meanwhile, The Israeli Air Force struck northern Iran for the first time, prompting Iran to launch missiles and drones at the UAE, Saudi Arabia, and Kuwait after key security and intelligence officials were assassinated, with Tehran vowing retaliation.
Fed holds rates steady, Powell signals hawkish tone
The FOMC held rates unchanged at 3.50–3.75% in an 11–1 vote, with Miran dissenting for a 25bps cut. The Fed emphasized it will monitor incoming data, labor market conditions, inflation pressures, and international developments, adjusting policy if risks threaten its goals. It reaffirmed commitment to maximum employment and returning inflation to 2%, while noting elevated uncertainty and unclear Middle East impacts on the US economy. Projections show the federal funds rate at 3.375% in 2026, 3.125% in 2027 and 2028, and 3.125% in the longer run, largely in line with expectations. Fed Chair Powell delivered hawkish-leaning remarks, noting a shift toward fewer expected rate cuts and emphasizing that without further progress on inflation, cuts are unlikely. He added that while most participants do not see a hike as the next move, the possibility of an increase was discussed at the meeting.
US PPI rises faster than expected in February
Headline PPI rose 0.7% M/M versus a 0.3% forecast, accelerating from 0.5% and lifting Y/Y to 3.4% from 2.9%, both at the top end of estimates. Core increased 0.5% M/M, cooling from 0.8%, with Y/Y at 3.9% versus a 3.7% forecast, while super core also rose 0.5% M/M versus 0.3% expected and 3.5% Y/Y, above 3.3%.
Thai court accepts ballot challenge, threatening election
Thailand’s Constitutional Court accepted a petition challenging last month’s election, alleging ballots may be traceable through bar and QR codes, potentially violating constitutional protections. A ruling against ballot secrecy could nullify the results and trigger a new vote, disrupting government formation.
Dollar firms on hawkish Powell, Middle East energy disruptions, and strong US PPI
The 10-year government bond yield (interpolated) on the previous trading day was 2.056, -5.83 bps. The benchmark government bond yield (LB365A) was 2.04, -3.00 bps. Meantime, the latest closed US 10-year bond yields was 4.26, +6.0 bps. USDTHB on the previous trading day closed around 32.32, moving in a range of 32.80 – 32.84 this morning. USDTHB could be closed between 32.70 – 33.00 today. The dollar strengthened on hawkish-leaning remarks from Fed Chair Powell, escalating Middle East energy disruptions, and a stronger-than-expected US PPI report. Meanwhile, the euro weakened and slipped below 1.1500 ahead of the ECB meeting, the British pound fell back from 1.3300 amid dollar strength and limited domestic catalysts before the BoE decision, and the Japanese yen softened with USD/JPY nearing 160.00, pressured by higher oil prices and Powell’s tone as attention turns to the BoJ.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
