- USDTHB: moving in the range 32.58 – 32.62 this morning, supportive level at 32.50 resistance level at 32.75
- SET Index: 1,568.37 (-0.04%), 29 May 2026
- S&P 500 Index: 7,599.96 (+0.26%), 1 June 2026
- Thai 10-year government bond yield (interpolated): 2.270 (-7.26 bps), 29 May 2026
- US 10-year treasury yield: 4.47 (+2.00 bps), 1 June 2026
- Middle East headlines fuel market volatility
- US ISM PMI expands at faster pace in May
- EU member inflation jumps, boosting case for ECB hike
- China PMI slips in May as economic momentum softens
- Dollar gains on geopolitical tensions and stronger ISM data
Middle East headlines fuel market volatility
The month began without a breakthrough on a formal ceasefire extension. Geopolitical tensions initially pushed crude prices sharply higher after reports that Iran had suspended indirect talks with the US and threatened key shipping routes. Sentiment later improved as President Trump said negotiations with Iran were progressing rapidly and announced a ceasefire between Israel and Hezbollah following a productive call with Prime Minister Netanyahu. Oil subsequently pared some gains, though both major crude benchmarks still closed firmly higher.
US ISM PMI expands at faster pace in May
US ISM Manufacturing PMI surprised to the upside in May, rising to 54.0 from 52.7 and beating consensus expectations of 53.0. The improvement was driven by stronger New Orders (56.8 vs. 54.1) and Production (54.3 vs. 53.4), while Employment also improved to 48.6 from 46.4. Encouragingly, the Prices Paid index eased to 82.1 from 84.6, though it remained elevated.
EU member inflation jumps, boosting case for ECB hike
Inflation remained well above the ECB’s 2% target across the euro area’s largest economies in May, reinforcing expectations that policymakers will resume tightening. Inflation accelerated to 2.8% in France, 3.3% in Italy, and 3.6% in Spain, while Germany’s reading eased to 2.7% but remained elevated. The data suggest that higher energy costs linked to Middle East tensions are continuing to feed into price pressures, supporting market expectations for a 25bp rate hike next month and potentially another before year-end. Separately, euro-area consumers’ three-year inflation expectations edged down to 2.9% in April from 3.0%, while one-year expectations held at 4.0% and five-year expectations remained at 2.4%, still above the ECB’s medium-term target.
China PMI slips in May as economic momentum softens
China’s official manufacturing PMI slipped to 50.0 in May from 50.3 as holiday disruptions and higher input costs weighed on activity. However, the non-manufacturing PMI returned to expansion territory at 50.1, while the private Manufacturing PMI rose to 51.8, supported by robust exports. Elsewhere in Asia, factory activity remained resilient, with PMIs strengthening across South Korea, Vietnam, Taiwan, and the Philippines, led by South Korea’s strongest reading since March 2021.
Dollar gains on geopolitical tensions and stronger ISM data
The 10-year government bond yield (interpolated) on the previous trading day was 2.270, -7.26 bps. The benchmark government bond yield (LB365A) was 2.23, -11.00 bps. Meantime, the latest closed US 10-year bond yields was 4.47, +2.0 bps. USDTHB on the previous trading day closed around 32.59, moving in a range of 32.58 – 32.62 this morning. USDTHB could be closed between 32.50 – 32.75 today. The US dollar strengthened as rising oil prices and heightened geopolitical tensions boosted demand for safe-haven assets. Sentiment improved later after President Trump signaled progress in US-Iran talks and announced a ceasefire between Israel and Hezbollah. The euro pared losses after briefly testing support near 1.1600, while sterling ended little changed despite intraday volatility. Meanwhile, the Japanese yen weakened, with USD/JPY climbing back above 159.00 amid higher oil prices and broad dollar strength.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
