- USDTHB: moving in the range 32.24-32.25 this morning supportive level at 32.20 resistance level at 32.35
- SET Index: 1,277.4 (+1.46%), 13 Aug 2025
- S&P 500 Index: 6,466.6 (+0.32%), 13 Aug 2025
- Thai 10-year government bond yield (interpolated): 1.420 (-3.58 bps), 13 Aug 2025
- US 10-year treasury yield: 4.24 (-5.0 bps), 13 Aug 2025
- Bessent calls for 150bps+ Fed rate cut
- Some Fed officials cautious on rate cuts amid tariff and data concerns
- Japan’s PPI hits 11-month low in July
- Thailand’s central bank cuts interest rate to 1.50%
- Dollar slips lower as expectations rise of Fed cut in September
Bessent calls for 150bps+ Fed rate cut
US Treasury Secretary Scott Bessent argued that the Fed’s current benchmark rate is too high, saying it should be lowered by at least 1.5 percentage points. He indicated that updated labor market data—released after the most recent Fed meeting—might have prompted a rate cut had it been available earlier. Bessent also revealed that 10 to 11 candidates are in the running to replace Chair Jerome Powell when his term ends in May.
Some Fed officials cautious on rate cuts amid tariff and data concerns
Fed officials struck a cautious tone on policy. Goolsbee stressed the need for Fed independence, warned that tariffs pose a stagflationary risk, and noted upcoming meetings are “live” but resisted pre-committing on rates. Bostic maintained his view for one rate cut in 2025, dependent on a strong labor market, and said current conditions allow for patience, though small businesses face rising stress. Former official Bullard called a 50bps September cut “panicky,” warning against aggressive moves and noting U.S. data may be weaker than it appears.
Japan’s PPI hits 11-month low in July
Japan’s producer price index (PPI) inflation rose slightly more than expected in July, increasing 2.6% year-on-year compared to forecasts of 2.5%, but marking the slowest growth in 11 months as higher U.S. tariffs weighed on local manufacturers. Monthly PPI growth matched expectations at 0.2%. The data reflects signs of cooling inflation amid ongoing trade pressures on Japan’s manufacturing sector.
Thailand’s central bank cuts interest rate to 1.50%
The Bank of Thailand’s monetary policy committee unanimously decided to cut the one-day repurchase rate by 25 basis points to 1.50%, the lowest level in over two years. The bank indicated it will maintain an accommodative stance amid concerns that increased US tariffs could trigger an extended period of economic slowdown.
Dollar slips lower as expectations rise of Fed cut in September
The 10-year government bond yield (interpolated) on the previous trading day was 1.420, -3.58 bps. The benchmark government bond yield (LB353A) was 1.420, -3.28 bps. Meantime, the latest closed US 10-year bond yields was 4.24, -5.0 bps. USDTHB on the previous trading day closed around 32.34, moving in a range of 32.24 – 32.25 this morning. USDTHB could be closed between 32.20 – 32.35 today. The US dollar weakened against major currencies, weighed down by declining US yields as markets fully priced in a 25bps rate cut at the Fed’s September meeting. With no significant US data releases, attention turned to speculation over the next Fed chair, Trump’s meetings with European leaders and Ukrainian President Zelensky ahead of his Friday meeting with Putin. The euro benefited from the dollar’s softness, reclaiming the 1.1700 level, though upside was limited amid a quiet eurozone news flow aside from Trump’s call with EU leaders, with markets now looking to Thursday’s EU GDP data. Meanwhile, the Japanese yen gained during the European session, holding below 148.00 as softer US yields bolstered expectations for a Fed rate cut.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
