- USDTHB: moving in the range 36.76-36.83 this morning supportive level at 36.70 resistance level at 36.90
· SET Index: 1,366.9 (-2.13%), 17 Apr 2024
· S&P 500 Index: 5,022.2 (-0.58%), 17 Apr 2024
· Thai 10-year government bond yield (interpolated): 2.77 (+2.23 bps), 17 Apr 2024
· US 10-year treasury yield: 4.59 (-8.00 bps), 17 Apr 2024
- US economic activity expanded slightly in recent weeks
- Confirmed euro zone inflation fall bolsters ECB's June rate cut plan
- Japan firms business mood slips as weak yen squeezes households
- US dollar weakens as market consolidates gains, but uptrend intact
US economic activity expanded slightly in recent weeks U.S. economic activity expanded slightly from late February through early April and firms signaled they expect inflation pressures to hold steady, continuing recent trends that have kept the central bank from being able to cut interest rates. The U.S. central bank released its latest snapshot on the health of the economy a day after Fed Chair Jerome Powell ditched previous guidance on when its benchmark interest rate may be cut and instead said monetary policy needs to be restrictive for longer due to a string of stronger-than-expected inflation readings. Up until the turn of the year, Powell and his colleagues had been buoyed by data that showed inflation, which spiked to a 40-year high two years ago, drifting downwards toward the Fed's 2% target rate, even amid strong economic growth and a low unemployment rate.
Confirmed euro zone inflation fall bolsters ECB's June rate cut plan Euro zone inflation slowed across the board last month, reinforcing expectations for a European Central Bank interest rate cut in June, even as rising energy costs and a weak euro cloud the outlook, final data from Eurostat showed. Inflation in the 20 nations sharing the euro currency slowed to 2.4% last month from 2.6% in February, in line with a preliminary estimate released earlier this month. Meanwhile underlying price growth, which filters out volatile food and energy prices dipped to 2.9% from 3.1%, despite services inflation holding steady at an uncomfortably high 4.0%. Inflation has fallen quickly over the past year, opening the way for interest rate cuts starting in June, even if the next few months are likely to bring choppy price growth data and a drawn-out return to the 2% target.
Japan firms business mood slips as weak yen squeezes households Business confidence at big Japanese manufacturers and services sector firms slid in April from the prior month, dragged down by cost-of-living pressures and shaky economic conditions in major market China, a Reuters monthly poll showed. The yen's weakening to levels unseen since 1990 during the heyday of the asset-inflated bubble is lifting the cost of imports in a blow to household consumption, according to the Reuters Tankan survey. Moreover, while the fall currency has boosted the value of exports, volume of shipments have not benefited as much, the survey found. The Reuters Tankan sentiment index for manufacturers stood at plus 9, down from the previous month's 10, dragged down by chemicals and food processing.
US dollar weakens as market consolidates gains, but uptrend intact The 10-year government bond yield (interpolated) on the previous trading day was 2.77, +2.23 bps. The benchmark government bond yield (LB31DA) was 2.75, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.59, -8.00 bps. USDTHB on the previous trading day closed around 36.79. Moving in a range of 36.76-36.83 this morning. USDTHB could be closed between 36.70-36.90 today. The dollar on Wednesday fell for the first time in six days, as investors consolidated gains after Federal Reserve officials repeated the interest rate-cutting cycle is on hold pending new economic data, while the monetary easing outlook for other major central banks remained unchanged. The greenback also dropped from 5-1/2-month highs hit on Tuesday. The dollar index was last down 0.4% at 105.89. So far this year, the index has gained about 4.7%. Top U.S. central bank officials, including Powell on Tuesday, have provided little indication into when rates may be cut, saying instead that monetary policy needs to be restrictive for longer. Recent data showed the U.S. economy remains stronger than expected, leading investors to reduce their bets on future rate cuts.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
