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Daily Market Insight: 24 May 2023

24 May 2023
  •   USDTHB: moving in the range 34.42-34.675 this morning supportive level at 34.50 resistance level at 34.80

·         SET Index: 1,534.8 (+0.37%), 23 May 2023

·         S&P 500 Index: 4,145.6 (-1.13%), 23 May 2023

·         Thai 10-year government bond yield (interpolated): 2.52 (+5.00 bps), 23 May 2023

·         US 10-year treasury yield: 3.70 (-2.00 bps), 23 May 2023


  • U.S. business activity in May hits 13-month high
  • Euro zone business growth solid in May but shows signs of easing
  • Japan manufacturers' mood turns positive as economy recovers
  • Dollar higher as U.S. debt ceiling concerns keep traders nervous


U.S. business activity in May hits 13-month high Growth in U.S. business activity touched a 13-month high in May as a jump in services activity helped offset weakness in the manufacturing sector, according to new data on Tuesday. S&P Global's flash U.S. composite purchasing managers' index rose to 54.5 during the month, up from 53.4 in April. It was the sharpest in the reading increase since April 2022, and topped economists' forecasts of 50.0. A level above 50 denotes expansion.  Leading the surge was the services industry, where the rate of growth was the fastest for just over a year thanks to a spike in demand that has allowed these companies to raise prices in a bid to counter "historically elevated" inflationary pressures. New business from abroad was particularly strong, with export orders growing for the first time in a year.


Euro zone business growth solid in May but shows signs of easing Euro zone business growth remained resilient but slowed slightly more than thought this month as the bloc’s dominant services industry lost a little of its shine and the downturn in the manufacturing sector deepened, a survey showed on Tuesday. HCOB’s flash Composite Purchasing Managers’ Index (PMI) for the bloc, compiled by S&P Global (NYSE:SPGI) and seen as a good gauge of overall economic health, fell to 53.3 in May from April’s 54.1. While still comfortably above the 50-mark separating growth from contraction it was below a Reuters poll estimate for 53.5. With prices still rising sharply and indebted households having to pay increased borrowing costs, overall demand growth waned sharply. The new business index dropped to 50.4 from 52.5.


Japan manufacturers' mood turns positive as economy recovers Business sentiment at big Japanese manufacturers turned positive for the first time this year and service-sector morale hit a five-month high, the Reuters Tankan poll showed, as the economy continued to improve from a COVID-led recession. Wednesday's monthly poll, which tracks the Bank of Japan's closely watched quarterly tankan survey, found that manufacturers are also upbeat about the coming three months, while service-sector morale was seen down a tad. The solid reading may further fuel speculation that the BOJ will embark on normalizing its easing policy sooner rather than later. However, Governor Kazuo Ueda has repeatedly said that inflation, supported by wage hikes, needs to track at a sustainable rate of 2% before the bank could consider any exit.


Dollar higher as U.S. debt ceiling concerns keep traders nervous The 10-year government bond yield (interpolated) on the previous trading day was 2.56, +5.04 bps. The benchmark government bond yield (LB31DA) was 2.52, +5.00 bps. LB31DA could be between 2.20-2.70. Meantime, the latest closed US 10-year bond yields was 3.70, -2.00 bps. USDTHB on the previous trading day closed around 34.63 Moving in a range of 34.52-34.675 this morning. USDTHB could be closed between 34.50-35.00 today. The U.S. dollar hit a two-month high against a basket of currencies on Tuesday as a lack of progress in talks over increasing the U.S. debt limit hurt investors' appetite for risk-taking. Representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress as the deadline to raise the government's $31.4 trillion borrowing limit or risk default ticked closer. While most market participants expect a deal eventually, the delay in getting it done was keeping traders nervous, Doyle said. Meanwhile, better-than-expected economic data and hawkish comments from regional Fed presidents including James Bullard and Neel Kashkari brought the possibility of further rate increases, also supporting the greenback.


Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC