- USDTHB: moving in the range 32.11-32.165 this morning supportive level at 32.00 resistance level at 32.25
- SET Index: 1,219.6 (+2.3%), 23 July 2025
- S&P 500 Index: 6,358.9 (+0.78%), 23 July 2025
- Thai 10-year government bond yield (interpolated): 1.499 (-0.14 bps), 23 July 2025
- US 10-year treasury yield: 4.40 (+5.0 bps), 23 July 2025
- EU signals progress on US trade deal involving 15% tariffs
- Japan’s PM Ishiba dismisses resignation reports
- Japan’s manufacturing PMI slips into contraction in July
- South Korea’s economy recovers amid challenges
- The US dollar extended its losses amid improved risk sentiment
EU signals progress on US trade deal involving 15% tariffs
The EU and US appear to be moving toward a potential trade agreement that includes a baseline 15% US tariff on EU goods, with possible exemptions for select European products. Nonetheless, the EU is also preparing countermeasures, including a package of tariffs on more than €90 billion worth of American goods, if a deal isn't reached by the Aug. 1 deadline.
Japan’s PM Ishiba dismisses resignation reports
Japanese Prime Minister Shigeru Ishiba on Wednesday denied reports that he had decided to resign, following claims from a source and media outlets suggesting he planned to step down to take responsibility for the ruling party’s setback in the upper house election.
Japan’s manufacturing PMI slips into contraction in July
Japan’s manufacturing sector contracted in July, with the manufacturing PMI falling to 48.8 from 50.1 in June, signaling a return to decline. Key sub-indices for output and new orders saw their sharpest drops in four and three months, respectively, as firms reacted to the impact of US tariffs. In contrast, the services sector showed resilience, with the services PMI rising to 53.5 from 51.7, driven by stronger new business growth. As a result, the composite PMI held steady at 51.5, unchanged from June.
South Korea’s economy recovers amid challenges
South Korea’s economy grew 0.6% in Q2, rebounding from a modest contraction in the prior quarter and slightly beating the 0.5% forecast. Year-on-year growth stood at 0.5%. The pickup was driven by solid exports and stronger domestic demand ahead of government stimulus. Sentiment also improved following political stabilization after Lee Jae Myung’s election in June.
The US dollar extended its losses amid improved risk sentiment
The 10-year government bond yield (interpolated) on the previous trading day was 1.499, -0.14 bps. The benchmark government bond yield (LB353A) was 1.486, -0.14 bps. Meantime, the latest closed US 10-year bond yields was 4.40, +5.0 bps. USDTHB on the previous trading day closed around 32.17, moving in a range of 32.11 – 32.165 this morning. USDTHB could be closed between 32.00 – 32.25 today. The dollar edged lower, particularly against higher-beta currencies, as risk appetite improved following the announcement of a US-Japan trade agreement. Meanwhile, the economic calendar was light, though existing home sales declined more than expected. The euro posted modest gains, though upside was limited amid mixed messages surrounding US-EU trade talks. Initial reports indicated progress toward a 15% tariff deal with some exemptions. However, the EU is expected to vote Thursday on a potential €93 billion countermeasure package. The British pound strengthened, holding above the 1.3500 mark, outperforming other cyclical currencies on the back of improved sentiment tied to recent US trade developments. The Japanese yen was marginally firmer versus the dollar, supported by a slight uptick in safe-haven demand after Prime Minister Ishiba denied speculation regarding his resignation.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
