- USDTHB: moving in the range 32.815-32.88 this morning supportive level at 32.70 resistance level at 32.95
- SET Index: 1,220.3 (+2.7%), 7 May 2025
- S&P 500 Index: 5,631.3 (+0.4%), 7 May 2025
- Thai 10-year government bond yield (interpolated): 1.828 (-6.00 bps), 7 May 2025
- US 10-year treasury yield: 4.26 (-4.0 bps), 7 May 2025
- Fed holds rates steady amid mounting risks of weaker growth and rising inflation
- Trump announces upcoming news on a "Major Trade Deal" with a major country
- Trump to remove Global chip limits, set new AI regulations
- The dollar gained ground against its peers following the Fed's rate decision
Fed holds rates steady amid mounting risks of weaker growth and rising inflation
The FOMC kept rates steady at 4.25–4.50% as expected, citing increased uncertainty in the economic outlook and rising risks of both higher unemployment and inflation. It maintained its view that economic activity is expanding at a solid pace, though net export swings have affected data. In his press conference and Q&A, Chair Powell struck a cautious tone, reaffirming a “wait-and-see” approach and noting current policy gives the Fed room to respond if needed. He said tariff impacts have been larger than expected but haven’t shown up clearly in data yet. As the economy evolves, the Fed will adjust policy based on how far employment and inflation are from target, but it’s too early to say which is more at risk. Powell emphasized patience, while also noting the Fed can act quickly if necessary.
Trump announces upcoming news on a "Major Trade Deal" with a major country
President Donald Trump announced a news conference on Thursday to discuss "a major trade deal with representatives of a respected country." The briefing, scheduled for 10 a.m. Washington time, will be held in the Oval Office. Trump did not specify the country or details of the deal but called it "the first of many."
Trump to remove Global chip limits, set new AI regulations
The Trump administration intends to reverse Biden-era restrictions on AI chip exports as part of a wider revision of semiconductor trade policies. The move aims to undo a policy introduced under President Biden, which established three categories for regulating chip exports from companies like Nvidia. The Trump administration will not enforce the "AI diffusion rule" set to take effect on May 15 and is working on a new rule to tighten controls on chips abroad.
The dollar gained ground against its peers following the Fed's rate decision
The 10-year government bond yield (interpolated) on the previous trading day was 1.828, -6.00 bps. The benchmark government bond yield (LB353A) was 1.821, -6.31 bps. Meantime, the latest closed US 10-year bond yields was 4.26, -4.0 bps. USDTHB on the previous trading day closed around 32.73, moving in a range of 32.815 – 32.88 this morning. USDTHB could be closed between 32.70 – 32.95 today. The dollar strengthened on Wednesday night after the FOMC meeting, where the Fed kept the FFR at 4.25-4.50% in a unanimous decision, as expected. The index continued to rise during Powell’s press conference, where he maintained a wait-and-see approach. The dollar largely reversed Tuesday’s decline, trading near 99.80. The euro weakened against the dollar following the FOMC meeting, testing the 1.1300 level on the downside before finding some support. Meanwhile, on the tariffs front, the EU is set to release a provisional list of tariffs on the US on Thursday, which will be implemented if trade talks break down. The Japanese yen weakened against most major currencies, although further gains in USD/JPY were limited by resistance at the 144.00 level.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
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