- USDTHB: moving in the range 32.70 – 32.73 this morning, supportive level at 32.65 resistance level at 32.85
- SET Index: 1,588.06 (+1.26%), 2 June 2026
- S&P 500 Index: 7,553.68 (-0.74%), 3 June 2026
- Thai 10-year government bond yield (interpolated): 2.219 (-5.06 bps), 2 June 2026
- US 10-year treasury yield: 4.49 (+3.00 bps), 3 June 2026
- Geopolitical risks remain unresolved
- US proposes broad tariffs of at least 10% over forced-labor imports
- US data signals resilient growth
- Eurozone inflation surpasses 3% for first time since 2023
- Dollar advances amid geopolitical risks and resilient US data
Geopolitical risks remain unresolved
Markets adopted a risk-off tone on Wednesday as escalating tensions between the US and Iran weighed on sentiment. Crude oil advanced and equities retreated as renewed US-Iran hostilities marked the most significant escalation since the April ceasefire. Iranian Foreign Minister Abbas Araghchi stated that negotiations have yet to deliver any meaningful progress, while President Trump maintained that Tehran remains close to reaching an agreement in principle and downplayed concerns. Meanwhile, political divisions emerged in Washington as the Republican-controlled House voted to halt the conflict, diverging from the administration’s stance.
US proposes broad tariffs of at least 10% over forced-labor imports
The US has proposed new tariffs of at least 10% on imports from 60 trading partners following a forced-labor investigation, as President Donald Trump seeks to re-establish a broad tariff regime previously struck down by the Supreme Court. Under the plan, a 10% levy would apply to imports from Canada, Mexico, the EU, Taiwan, and the UK, while countries including China, India, Japan, South Korea, Brazil, Thailand, and Switzerland would face a 12.5% rate, with several exemptions under consideration. The proposal is not yet final and will go through a public comment process, with written comments due by July 6 and hearings beginning July 7.
US data signals resilient growth
US data pointed to continued economic resilience, with ISM Services PMI rising to 54.5 in May, driven by stronger business activity and new orders, while prices accelerated further to 71.3, reflecting higher energy, transportation and tariff-related costs. Meanwhile, ADP employment increased by 122k, beating expectations and signaling steady labour market momentum. US job openings jumped to 7.62 million in April from 6.87 million, well above expectations and the highest level in two years, lifting the vacancy rate to 4.6%.
Eurozone inflation surpasses 3% for first time since 2023
Euro-area inflation rose above 3% for the first time in over 2½ years, reinforcing expectations of a rate hike at the ECB’s upcoming meeting. Headline inflation reached 3.2% in May, up from 3.0% and in line with forecasts, while core inflation accelerated more than expected to 2.5%. Services inflation also surged to 3.5%, underscoring persistent underlying price pressures.
Dollar advances amid geopolitical risks and resilient US data
The 10-year government bond yield (interpolated) on the previous trading day was 2.219, -5.06 bps. The benchmark government bond yield (LB365A) was 2.19, -4.00 bps. Meantime, the latest closed US 10-year bond yields was 4.49, +3.0 bps. USDTHB on the previous trading day closed around 32.56, moving in a range of 32.70 – 32.73 this morning. USDTHB could be closed between 32.65 – 32.85 today. The dollar advanced against major peers as heightened US-Iran tensions drove risk-off flows, while Iran signaled that indirect communication with the US continues but without tangible progress. Stronger-than-expected ISM Services and ADP employment data reinforced US economic resilience, while Fed officials Barr and Williams reiterated that policy remains appropriately positioned. Against this backdrop, the euro slipped below 1.16, the British pound weakened alongside other cyclical currencies, and the Japanese traded choppily after comments from PM Takaichi and BoJ Governor Ueda, though USD/JPY ultimately climbed above 160.00.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
