- USDTHB: moving in the range 32.93 – 32.95 this morning, supportive level at 32.88 resistance level at 33.08
- SET Index: 1,563.59 (-1.30%), 10 June 2026
- S&P 500 Index: 7,266.99 (-1.62%), 10 June 2026
- Thai 10-year government bond yield (interpolated): 2.289 (-2.87 bps), 10 June 2026
- US 10-year treasury yield: 4.55 (+2.00 bps), 10 June 2026
- Geopolitical risks surge as US and Iran exchange strikes
- US consumer prices rise by 4.2% annually in May
- China consumer inflation stalls while factory prices surge
- Dollar trades mixed as markets weigh inflation and geopolitical risks
Geopolitical risks surge as US and Iran exchange strikes
Middle East tensions escalate sharply as the US launches a new wave of strikes against multiple targets in Iran in response to what Washington describes as continued Iranian aggression. The attacks follow Iran’s downing of a US Apache helicopter and come amid increasingly hawkish rhetoric from President Trump, who warns that Tehran will “pay the price” and signals additional military action. Iran vows a forceful response, while retaliatory strikes across the region continue to raise concerns over a broader conflict. With US-Iran negotiations stalled and the Strait of Hormuz remaining a key flashpoint, markets remain focused on the risks of prolonged energy supply disruptions and renewed inflationary pressures.
US consumer prices rise by 4.2% annually in May
Headline CPI rose 0.5% M/M in May, in line with expectations, while annual inflation accelerated to 4.2% YoY. However, underlying price pressures were somewhat softer than anticipated, with core CPI increasing just 0.2% M/M, below the 0.3% consensus forecast and down from 0.4% in April, although the annual core rate edged up to 2.9% YoY. The softer monthly core reading suggests inflation momentum may be moderating despite elevated energy costs, but inflation remains well above the Fed’s target and is unlikely to materially alter the market’s increasingly hawkish policy expectations given the continued resilience of the labor market. Within the details, goods prices softened, while services and supercore inflation cooled on a monthly basis but remained firm in annual terms.
China consumer inflation stalls while factory prices surge
China’s inflation picture remained mixed in May, with consumer prices unexpectedly losing momentum while producer prices accelerated to their fastest pace in nearly four years. CPI rose 1.2% YoY, unchanged from April and below market expectations, as a sharp decline in pork prices weighed on headline inflation. Core CPI also came in softer than expected, easing to 1.1% YoY. In contrast, PPI accelerated to 3.9% YoY, driven largely by higher oil and petrochemical costs amid supply disruptions linked to the Middle East conflict. The divergence highlights still-subdued domestic demand alongside mounting upstream price pressures.
Dollar trades mixed as markets weigh inflation and geopolitical risks
The 10-year government bond yield (interpolated) on the previous trading day was 2.289, -2.87 bps. The benchmark government bond yield (LB365A) was 2.28, -3.00 bps. Meantime, the latest closed US 10-year bond yields was 4.55, +2.0 bps. USDTHB on the previous trading day closed around 32.92, moving in a range of 32.93 – 32.95 this morning. USDTHB could be closed between 32.88 – 33.08 today. The dollar traded mixed as a broadly in-line US CPI report, including a softer core monthly reading, eased concerns over further inflation acceleration. While the data is unlikely to materially shift Fed expectations, attention now turns to Thursday’s PPI report for further clues on the inflation outlook. Meanwhile, geopolitical tensions remained elevated as US-Iran negotiations stalled following renewed military exchanges. Major currencies traded in narrow ranges ahead of key central bank events. The euro was little changed as investors awaited Thursday’s ECB meeting, while the British pound edged lower after failing to hold above the 1.3400 level amid a lack of UK economic data. Meanwhile, the Japanese yen softened modestly, with USD/JPY remaining above 160 as markets continued to anticipate a BOJ rate hike next week.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
