- USDTHB: moving in the range 32.95-32.99 this morning supportive level at 32.80 resistance level at 33.10
- SET Index: 1,199.0 (+0.1%), 2 May 2025
- S&P 500 Index: 5,650.4 (-0.6%), 5 May 2025
- Thai 10-year government bond yield (interpolated): 1.905 (+1.49 bps), 2 May 2025
- US 10-year treasury yield: 4.36 (+3.0 bps), 5 May 2025
- US employment added 177K jobs in April, beating expectations amid uncertainty
- Eurozone Inflation remains elevated , putting pressure on ECB policy choices
- US ISM Services PMI picks up after slumping in March
- China quietly exempts about a quarter of US imports from tariffs
- Japan's Kato implies US treasury holdings could serve as bargaining tool
- Dollar off lows after strong ISM services PMI
US employment added 177K jobs in April, beating expectations amid uncertainty
Nonfarm payrolls grew by 177,000 in April, surpassing the 130,000 forecast, despite downward revisions to the previous two months' job gains. Payroll gains were broad based, with health care leading the way. Transportation and warehousing saw the largest increase since December, driven by rising imports and pre-tariff labor demand. Meanwhile, manufacturing lost jobs amid its steepest output decline since 2020. The unemployment rate remained unchanged at 4.2%, in line with expectations and below the Federal Reserve's year-end forecast of 4.4%. Additionally, average hourly earnings increased by 0.2%, a slowdown from March, while the year-over-year growth was 3.8%.
Eurozone Inflation remains elevated , putting pressure on ECB policy choices
Eurozone inflation held firm at 2.2% in April, defying expectations for a dip to 2.1%. Core inflation climbed to 2.7%, beating forecasts. Services inflation increased temporarily due to Easter falling later this year, with a decline anticipated in May. Country-level data showed modest slowdowns in Germany and France, while price growth in Italy and Spain remained unchanged.
US ISM Services PMI picks up after slumping in March
The headline Services PMI increased to 51.6 in April from 50.8 in March, surpassing the forecast of 50.2 and indicating growth in the US services sector. While business activity slowed to 53.7 from 55.9, new orders picked up to 52.3 from 50.4. Employment also improved, rising to 49.0 from 46.2, though it remained below the 50 threshold that separates contraction from expansion. Notably, prices paid jumped significantly to 65.1 from 60.9.
China quietly exempts about a quarter of US imports from tariffs
China has rolled out tariff exemptions on about $40 billion worth of U.S. imports, targeting 131 items such as pharmaceuticals and industrial chemicals. The move is seen as a strategic measure to shield its economy from trade war pressures, not a conciliatory gesture.
Japan's Kato implies US treasury holdings could serve as bargaining tool
Japan's Finance Minister Katsunobu Kato indicated that the nation's US Treasury holdings might serve as a bargaining chip in trade talks with the US.
Dollar off lows after strong ISM services PMI
The 10-year government bond yield (interpolated) on the previous trading day was 1.905, +1.49 bps. The benchmark government bond yield (LB353A) was 1.902, +1.48 bps. Meantime, the latest closed US 10-year bond yields was 4.36, +3.0 bps. USDTHB on the previous trading day closed around 33.27, moving in a range of 32.95 – 32.99 this morning. USDTHB could be closed between 32.80 – 33.00 today. The dollar rebounded after strong ISM Services data. Nonetheless, It was a quiet day ahead of the FOMC meeting. On trade, President Trump signaled possible tariff cuts on China and mentioned potential tariffs on foreign films, though no final decision has been made. The euro surrendered early gains as the dollar recovered, with EUR/USD finding support near 1.1300. The Japanese yen held firm as USD/JPY fell below 144.00 due to weak risk sentiment, with Japanese markets closed Tuesday for Greenery Day.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
