- USDTHB: moving in the range 32.57-32.575 this morning supportive level at 32.45 resistance level at 32.65
- SET Index: 1,248.1 (+1.0%), 20 Aug 2025
- S&P 500 Index: 6,395.8 (-0.24%), 20 Aug 2025
- Thai 10-year government bond yield (interpolated): 1.351 (+0.04 bps), 20 Aug 2025
- US 10-year treasury yield: 4.29 (-1.0 bps), 20 Aug 2025
- Fed Minutes reveal inflation seen as main risk
- Trump calls for Fed’s Cook to quit over mortgage claim
- UK inflation climbs to 18-month high on food, transport surge
- Indonesia surprises with rate cut to 5%
- Dollar slightly lower, capped by hawkish FOMC minutes
Fed Minutes reveal inflation seen as main risk
The FOMC Minutes showed broad support for keeping rates at 4.25%–4.5%, with participants noting it will take time to gauge the inflationary impact of higher tariffs. While downside risks to employment have grown, most viewed inflation as the greater concern, though opinions varied. Some expected businesses to increasingly pass tariff costs to consumers, while others noted mixed strategies to limit the impact. Several participants also suggested the current rate may be near neutral, citing financial conditions that remain supportive of economic activity.
Trump calls for Fed’s Cook to quit over mortgage claim
President Donald Trump has escalated his push to influence the Federal Reserve, calling for Governor Lisa Cook to resign amid allegations she may have provided false information on two mortgage applications. The claims were raised by a Trump ally at the Federal Housing Finance Agency. In response, Cook firmly stated she has “no intention of being bullied into stepping down” over issues raised in a tweet. She added that she is gathering relevant information and will address any legitimate concerns.
UK inflation climbs to 18-month high on food, transport surge
UK inflation rose to 3.8% in July, exceeding expectations and marking an 18-month high, driven by sharp increases in food, fuel, and transport costs. The unexpected uptick adds pressure on the Bank of England to reconsider the timing and pace of future rate cuts. Consumer prices outpaced the 3.7% forecast, while services inflation climbed to 5%, above the BoE’s 4.9% estimate. The rise in services and food prices is likely to heighten concerns within the central bank about the persistence of inflation.
Indonesia surprises with rate cut to 5%
Bank Indonesia cut the BI-Rate by 25 basis points to 5% and indicated the possibility of further rate cuts to support growth. Governor Perry Warjiyo stated the move aligns with expectations for low inflation and reflects the need to stimulate the economy in line with its potential.
Dollar slightly lower, capped by hawkish FOMC minutes
The 10-year government bond yield (interpolated) on the previous trading day was 1.351, +0.04 bps. The benchmark government bond yield (LB353A) was 1.343, -0.23 bps. Meantime, the latest closed US 10-year bond yields was 4.29, -1.0 bps. USDTHB on the previous trading day closed around 32.59, moving in a range of 32.57 – 32.575 this morning. USDTHB could be closed between 32.45 – 32.65 today. The dollar index dipped slightly but losses were limited by hawkish signals in the July FOMC Minutes, which highlighted rising inflation risks and suggested rates may remain near neutral. However, the dollar faced pressure amid concerns over Fed independence after FHFA Director Pulte accused Fed Governor Cook of possible mortgage fraud, prompting former President Trump to call for her resignation. Meanwhile, the euro ended flat as markets showed little reaction to ECB President Lagarde’s comments that, although recent trade deals have reduced uncertainty, challenges remain, and the Eurozone economy has shown resilience. The Japanese yen strengthened, with USD/JPY briefly dipping toward 147.00 amid early equity market pressure.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
