- USDTHB: moving in the range 33.135-33.145 this morning, supportive level at 33.00 resistance level at 33.25
· SET Index: 1,684.9 (+0.19%), 16 Jan 2023
· S&P 500 Index: 3,999.1 (+0.40%), 13 Jan 2023
· Thai 10-year government bond yield (interpolated): 2.41 (+2.49 bps), 16 Jan 2023
· US 10-year treasury yield: 3.49 (+6.00 bps), 13 Jan 2023
- U.S. December deficit quadruples as outlays grow, debt ceiling nears
- Japan’s sharp wholesale price rise heaps pressure on BOJ’s ultra-easy policy
- China Q4 GDP slows on COVID woes, but beats expectations
- Dollar finds its footing near seven-month low, all eyes on yen
U.S. December deficit quadruples as outlays grow, debt ceiling nears The U.S. government's December budget deficit quadrupled from a year earlier to $85 billion as receipts shrank slightly and outlays grew to a new December record, the Treasury Department said on Thursday as it neared the $31.4 trillion federal debt limit. The results confirmed forecasts that revenues would start to ease as a red-hot economy cools and showed that reductions in pandemic relief spending have faded. Underlying costs for healthcare, Social Security and interest on a growing pool of public debt are rising, the Treasury data showed. A Treasury official declined to estimate when the debt ceiling may be nominally reached - an event outside analysts predict could happen in coming days or weeks. Treasury data showed that the debt on Tuesday was $58.5 billion below the limit with an operating cash balance of $368 billion.
Japan’s sharp wholesale price rise heaps pressure on BOJ’s ultra-easy policy Japan’s annual wholesale prices rose at a faster-than-expected pace in December, data showed on Monday, adding to recent growing signs of inflationary pressure that could force the central bank to raise interest rates soon. The 10.2% year-on-year rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, exceeded a median market forecast for a 9.5% gain, Bank of Japan data showed. It followed a revised 9.7% increase in November. While global commodity prices slipped, companies continued to pass on past increases in raw material costs for goods such as auto parts and electricity equipment, said a BOJ official briefing reporters on the data.
China Q4 GDP slows on COVID woes, but beats expectations The Chinese economy grew at a slower pace in the fourth quarter of 2022, data showed on Tuesday, as disruptions caused by the country’s now relaxed zero-COVID policy weighed heavily on business activity, although the reading still beat expectations. Chinese gross domestic product (GPD) grew at an annualized rate of 2.9% in the three months to December 31, data from the National Bureau of Statistics showed. The reading was higher than expectations for growth of 1.8%, and down from the third quarter’s reading of 3.9%. GDP was flat in the fourth quarter from the three months to September 31, ducking expectations for a 0.8% decline. This brought China’s overall GDP in 2022 to 3%, lower than the 4.4% growth estimated by President Xi Jinping during his New Year’s address. It was also down significantly from the 8.1% growth seen in 2021.
Dollar finds its footing near seven-month low, all eyes on yen The 10-year government bond yield (interpolated) on the previous trading day was 2.41, +2.49 bps. The benchmark government bond yield (LB31DA) was 2.41, +4.0 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.49, +6.0 bps. USDTHB on the previous trading day closed around 32.84 Moving in a range of 33.135-33.145 this morning. USDTHB could be closed between 32.90-33.20 today. The dollar started the week on the back foot, hitting a seven-month low against a basket of major peers in Asian trade before steadying, with the yen in particular focus due to traders' bets the Bank of Japan will tweak its yield control policy further. The euro hit a fresh nine-month top of $1.0874 in early trade before retreating to last stand 0.16% lower at $1.0816, while the Australian dollar breached the key $0.7000 level for the first time since August, before dipping back to $0.6962. Thanks also to early strength from sterling and the Japanese yen, the dollar index, which tracks the greenback against a basket of currencies, slumped to a seven-month trough of 101.77, extending its selloff from last week after data showed that U.S consumer prices fell for the first time in more than 2-1/2 years in December. With decades-high inflation in the world's largest economy showing signs of cooling, investors are now growing increasingly confident that the Fed is nearing the end of its rate-hike cycle, and that rates will not go as high as previously feared.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
