- USDTHB: moving in the range 32.45-32.56 this morning supportive level at 32.40 resistance level at 32.65
- SET Index: 1,141.6 (+0.2%), 11 June 2025
- S&P 500 Index: 6,022.2 (-0.27%), 11 June 2025
- Thai 10-year government bond yield (interpolated): 1.70 (+1.46 bps), 11 June 2025
- US 10-year treasury yield: 4.41 (-6.0 bps), 11 June 2025
- US CPI data came in below expectations
- Trump announces China to supply rare earths in finalized trade deal
- Trump signals unilateral tariffs coming in two weeks
- US to cut embassy staff in Middle East amid rising tensions
- The dollar falls after a dovish CPI report
US CPI data came in below expectations
Both headline and core CPI rose 0.1% in May from the previous month, with core inflation holding steady at 2.8% year-over-year for the third consecutive month. Headline CPI inched up to 2.4% from 2.3%. Price growth was tempered by declines in airfares, vehicles, and clothing, along with modest increases in service costs, which helped keep core inflation subdued. Additionally, a fall in energy prices helped restrain headline inflation. The data supports the Fed’s progress on inflation, with no clear impact yet from tariffs. However, the Fed's Beige Book noted some firms plan to raise prices in the next three months, suggesting tariff effects may show up later. Markets briefly priced in two rate cuts this year.
Trump announces China to supply rare earths in finalized trade deal
President Donald Trump announced that a trade framework with China has been finalized, which includes China providing rare earths and magnets "up front," while the US will continue admitting Chinese students to its colleges and universities. The US and China agreed this week in London to keep tariffs at their current, reduced levels, though these remain higher than before Trump took office. Trump stated, "We are imposing a total of 55% tariffs, while China faces 10%." He also noted that the agreement still requires formal approval from both him and Chinese President Xi Jinping.
Trump signals unilateral tariffs coming in two weeks
President Trump will soon send letters to trading partners setting tariff rates ahead of the July 9 deadline. So far, agreements have been reached only with the UK and China, despite threats of higher tariffs on many nations. Talks continue with India, Japan, South Korea, and the EU, with the EU expected to be finalized last.
US to cut embassy staff in Middle East amid rising tensions
The US ordered some embassy staff to leave Baghdad and allowed military families to exit the Middle East amid rising security threats. Iran warned of attacks on US bases if nuclear talks collapse, while the UK Navy cautioned that tensions could disrupt shipping through the Strait of Hormuz. Geopolitical analysts appear to have a mixed view, with some warning it could reflect a major threat (like an Israeli strike on Iran if nuclear talks fail), or others suggest perhaps it is a negotiating tactic ahead of talks on Sunday.
The dollar falls after a dovish CPI report
The 10-year government bond yield (interpolated) on the previous trading day was 1.70, +1.46 bps. The benchmark government bond yield (LB353A) was 1.708, +2.06 bps. Meantime, the latest closed US 10-year bond yields was 4.41, -6.0 bps. USDTHB on the previous trading day closed around 32.63, moving in a range of 32.45– 32.56 this morning. USDTHB could be closed between 32.40 – 32.65 today. The dollar came under pressure as the index fell below 99.00 after weaker-than-expected US CPI data boosted expectations for Fed rate cuts. The euro gained from the dollar’s weakness but faced resistance near the 1.1500 level, despite numerous ECB comments that had little effect. The Japanese yen experienced volatile movement as USD/JPY fluctuated around the 145.00 mark before pulling back, driven by a weaker dollar and worsening risk sentiment.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
