- USDTHB: moving in the range 32.71-32.725 this morning supportive level at 32.55 resistance level at 32.85
- SET Index: 1,187.9 (-0.9%), 6 May 2025
- S&P 500 Index: 5,606.9 (-0.8%), 6 May 2025
- Thai 10-year government bond yield (interpolated): 1.888 (-1.70 bps), 6 May 2025
- US 10-year treasury yield: 4.30 (-6.0 bps), 6 May 2025
- US trade deficit hits record on pre-tariff drug surge
- US-China trade talks to start this week
- China Caixin services slips, adding risk of rapid slowdown
- China cuts key rate, reserve ratio to aid economy hit by tariffs
- Thailand inflation drops 0.22% in April
- Dollar retreats ahead of Fed meeting
US trade deficit hits record on pre-tariff drug surge
The US trade deficit hit a record $140.5 billion in March, exceeding the median forecast of a $137.2 billion deficit and rising 14% as companies rushed to import goods ahead of Trump’s April 2 tariff announcement. Consumer goods imports saw the largest increase on record, largely driven by a historic surge in pharmaceutical shipments. Imports of capital goods and vehicles also increased.
US-China trade talks to start this week
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will travel later this week to Switzerland for trade talks with China led by Vice Premier He Lifeng, seeking to deescalate a tariff standoff that has threatened to hammer both economies.
China Caixin services slips, adding risk of rapid slowdown
The Caixin China services PMI dropped to 50.7 in April, its lowest level in seven months, falling short of the market expectation of 51.8. A sub-index tracking future activity expectations dropped to the second-lowest level since the data began in 2005, only weaker during the February 2020 Covid outbreak. In addition to the impact on sentiment, tariffs contributed to the slowest growth in new business orders since December 2022.
China cuts key rate, reserve ratio to aid economy hit by tariffs
The People’s Bank of China cut the seven-day reverse repurchase rate to 1.4% from 1.5%. The central bank will also trim the reserve requirement ratio by half a percentage point without saying when that would be effective. In addition, the central bank will set up a 500 billion yuan relending tool for consumption, elderly care, and increase its technology relending fund by 300 billion yuan.
Thailand inflation drops 0.22% in April
Thailand’s inflation turned negative in April for the first time in over a year, driven by lower fuel costs and increased fresh food supply. The consumer price index fell 0.22%, surpassing expectations of a 0.1% decline. Core inflation rose 0.98%, slightly above the forecasted 0.9%. Monthly, prices dropped 0.21%, marking the third consecutive month of negative readings.
Dollar retreats ahead of Fed meeting
The 10-year government bond yield (interpolated) on the previous trading day was 1.888, -1.70 bps. The benchmark government bond yield (LB353A) was 1.884, -1.85 bps. Meantime, the latest closed US 10-year bond yields was 4.30, -6.0 bps. USDTHB on the previous trading day closed around 32.84, moving in a range of 32.71 – 32.725 this morning. USDTHB could be closed between 32.55 – 32.85 today. The US dollar continued to decline after briefly touching the 100.00 level, unable to maintain its gains due to a lack of new economic data and as traders looked ahead to the upcoming FOMC meeting. The euro strengthened on the back of dollar weakness, firmly holding above the 1.1300 level, with attention turning to Germany after CDU leader Merz was elected Chancellor in the second round of the parliamentary vote. The Japanese yen gained strength as USD/JPY fell below the 143.00 level, driven by dollar weakness and a decline in risk sentiment.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
