- USDTHB: moving in the range 33.125-33.185 this morning supportive level at 32.95 resistance level at 33.35
- SET Index: 1,206.6 (-1.1%), 8 May 2025
- S&P 500 Index: 5,663.9 (+0.6%), 8 May 2025
- Thai 10-year government bond yield (interpolated): 1.823 (-0.46 bps), 8 May 2025
- US 10-year treasury yield: 4.37 (+11.0 bps), 8 May 2025
- The US announced a trade framework with the UK
- Trump says China tariffs will come down from 145%
- Initial jobless claims drop, beating market expectations
- BOE cuts rates to 4.25% in split vote as tariffs hit growth
- The dollar gained, fueled by optimism over the US-UK trade deal
The US announced a trade framework with the UK
The UK and US finalized a trade deal maintaining a 10% UK tariff rate, with the UK set to purchase $10B in Boeing planes. In exchange, Rolls-Royce can export engines and parts to the US tariff-free. The agreement is expected to generate $6B in US tariff revenue and $5B in new export opportunities, while enhancing national security through a metals trade zone and pharma supply chain. The UK will ease access for US exports like ethanol, beef, and tobacco. Auto exports are capped at 100,000 vehicles at the 10% rate, with a 25% tariff above that. Though Trump said the 10% rate isn't a template, USTR Greer called the deal a potential model for others.
Trump says China tariffs will come down from 145%
President Donald Trump said Thursday he anticipates meaningful trade talks with China this weekend and expects the current 145% U.S. tariffs on Chinese goods to likely be reduced.
Initial jobless claims drop, beating market expectations
Initial jobless claims for the week ending May 3 came in at 228,000, slightly below expectations of 230,000 and down from the previous week's 241,000. Continued claims for the week ending April 26 also declined, reaching 1.879 million versus the expected 1.886 million and prior 1.908 million.
BOE cuts rates to 4.25% in split vote as tariffs hit growth
The MPC cut the base rate by 25bps to 4.25% as expected, but the 7-2 vote revealed more division than anticipated. Mann and Pill opposed the cut, citing the need to stay restrictive to combat inflation. Dhingra and Taylor supported a deeper 50bps cut, warning of global growth risks and potential output gaps. The other five backed a 25bps cut, mostly influenced by recent trade developments. The MPC kept its “gradual and careful” easing guidance and reiterated that policy must remain restrictive, defying expectations of a shift in tone. The MPR lowered near-term inflation, raised 2025 growth, and cut 2026 forecasts, though it didn’t factor in the upcoming UK-US trade deal. The press conference offered minimal new insight.
The dollar gained, fueled by optimism over the US-UK trade deal
The 10-year government bond yield (interpolated) on the previous trading day was 1.823, -0.46 bps. The benchmark government bond yield (LB353A) was 1.814, -0.66 bps. Meantime, the latest closed US 10-year bond yields was 4.37, +11.0 bps. USDTHB on the previous trading day closed around 32.77, moving in a range of 33.125 – 33.185 this morning. USDTHB could be closed between 32.95 – 33.35 today. The US dollar extended its post-FOMC gains, strengthening against all major currencies as renewed confidence in the US economy and trade optimism boosted sentiment. Mixed data releases had limited impact, though falling jobless claims and rising unit labor costs provided additional support. The euro weakened under pressure from a stronger dollar, slipping below the 1.1300 level, as the EU Commission unveiled a list of potential retaliatory measures against the US if trade talks collapse. The Japanese yen softened, with USD/JPY briefly reclaiming the 146.00 level, driven by improved risk appetite and rising US Treasury yields.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
