- USDTHB: moving in the range 33.50-33.59 this morning, supportive level at 33.40 resistance level at 33.65
· SET Index: 1,670.3 (-0.61%), 8 Feb 2023
· S&P 500 Index: 4,117.9 (-1.11%), 8 Feb 2023
· Thai 10-year government bond yield (interpolated): 2.50 (-1.58 bps), 8 Feb 2023
· US 10-year treasury yield: 3.63 (-4.00 bps), 8 Feb 2023
- U.S. wholesale inventories post smallest gain in 2-1/2 years; sales muted
- Italy inflation-adjusted retail sales fell in 2022
- India central bank hikes rates 25 bps as expected, hints more could come
- U.S. dollar flat to moderately higher, weak outlook intact on Fed outlook
U.S. wholesale inventories post smallest gain in 2-1/2 years; sales muted U.S. wholesale inventories recorded their smallest increase in nearly 2-1/2 years in December, suggesting that businesses were holding back on placing new orders for goods amid a stagnation in sales as higher interest rates curb demand. The Commerce Department said on Wednesday that wholesale inventories edged up 0.1% as previously reported last month. That was the smallest gain since July 2020. Stocks at wholesalers increased 0.9% in November. Economists polled by Reuters had expected that inventories would be unrevised. Inventories are a key part of gross domestic product. There were increases in wholesale stocks of motor vehicles and electrical equipment. But furniture, computer and professional equipment inventories declined. There were also big decreases in stocks of apparel, farm products, petroleum and paper.
Italy inflation-adjusted retail sales fell in 2022 Italian retail sales increased in value terms but decreased in volume in 2022 compared to the previous year, with consumers suffering from high inflation, data showed on Wednesday. National statistics bureau ISTAT reported that sales increased 4.6% in value terms against a 0.8% decline in volume, with the contraction in food goods (-4.2% in volume) outweighing a 1.9% increase in non-food products. Consumer price inflation in Italy based on the EU-harmonised index grew by 8.7% in 2022 – the largest increase in more than 30 years – driven by soaring energy prices. In December alone retail sales fell 0.7% percent in volume terms after a +0.4% rise in November. In unadjusted year-on-year terms they were down 4.4%.
India central bank hikes rates 25 bps as expected, hints more could come The Reserve Bank of India hiked its key repo rate by a quarter percentage point on Wednesday as expected but surprised markets by leaving the door open to more tightening, saying core inflation remained high. The central bank said that its policy stance remains focused on the withdrawal of accommodation, with four out of six members voting in favor of that position. Most analysts had expected a hike on Wednesday to be the final increase in the RBI's current tightening cycle, which has seen it raise rates by 250 bps since May last year. A growing number of central banks around the world have signaled a pause or halt in their tightening campaigns in recent weeks as consumer inflation comes off the boil and growth in their economies shows signs of softening. Indian stocks extended modest gains after the decision, while bond yields rose and the rupee was little changed.
U.S. dollar flat to moderately higher, weak outlook intact on Fed outlook The 10-year government bond yield (interpolated) on the previous trading day was 2.50, -1.58 bps. The benchmark government bond yield (LB31DA) was 2.54, -2.0 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.63, -4.0 bps. USDTHB on the previous trading day closed around 33.54 Moving in a range of 33.50-33.59 this morning. USDTHB could be closed between 33.40-33.80 today. The dollar was little changed to marginally higher on Wednesday as investors paused selling the greenback a day after Federal Reserve Chair Jerome Powell did not significantly change his interest rate outlook despite a strong U.S. jobs report last week. The greenback's outlook, however, remained tilted to the downside as the Fed nears the end of its tightening cycle and the markets price in rate cuts by the end of the year, analysts said. In a question-and-answer session before the Economic Club of Washington on Tuesday, Powell said interest rates might need to move higher than expected if the U.S. economy remains strong, but reiterated he felt a process of "disinflation" is underway. The greenback slipped as Powell spoke.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
