- USDTHB: moving in the range 35.05-35.14 this morning, supportive level at 34.90 resistance level at 35.25
· SET Index: 1,618.5 (+0.72%), 6 March 2023
· S&P 500 Index: 3,986.4 (-1.54%), 6 March 2023
· Thai 10-year government bond yield (interpolated): 2.54 (-4.94 bps), 3 March 2023
· US 10-year treasury yield: 3.97 (-1.00 bps), 6 March 2023
- Hawkish Powell puts 50 bp Fed rate hikes back on table
- ECB survey sees moderating inflation, rising wage expectations
- Japan runs record current account deficit in January
- Dollar jumps as Powell flags higher terminal rate
Hawkish Powell puts 50 bp Fed rate hikes back on table The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told U.S. lawmakers on Tuesday. "The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," Powell said in prepared remarks for a hearing before the Senate Banking Committee. U.S. stocks sold off, Treasury yields rose and the dollar extended a gain after Powell's comments, his first since inflation unexpectedly jumped in January and the U.S. government reported an unusually large increase in payroll jobs for that month.
ECB survey sees moderating inflation, rising wage expectations Inflation expectations among euro zone consumers dropped in January but expectations for wage growth continued to rise, adding to fears wage growth will slow efforts to control prices, a European Central Bank survey showed on Tuesday. Overall inflation is now falling relatively quickly but underlying price pressures are continuing to build, in part driven by quick nominal wage growth in services, suggesting that price growth could remain far more stubborn than the ECB now expects. Inflation expectations for the next 12 months eased to 4.9% from 5.0% a month earlier while expectations three years out fell more sharply, to 2.5% from 3%, according to median estimates from around 14,000 consumers in six of the euro zone’s biggest economies.
Japan runs record current account deficit in January Japan logged a record current account deficit in January on persistent rises in the cost of importing fuel, government data showed on Wednesday. The deficit, at 1.98 trillion yen ($14.43 billion), exceeded a median market forecast of 818.4 billion yen and marked the biggest amount on record, the government said. The country's trade deficit in January was also the largest since relevant data became available in 1996, the data showed. The data underscores the pain that stubbornly high energy costs are inflicting on Japan's economy, which is heavily reliant on imports of fuel and raw material.
Dollar jumps as Powell flags higher terminal rate The 10-year government bond yield (interpolated) on the previous trading day was 2.54, -4.94 bps. The benchmark government bond yield (LB31DA) was 2.775, -10.50 bps. LB31DA could be between 2.50-3.00. Meantime, the latest closed US 10-year bond yields was 3.97 -1.00 bps. USDTHB on the previous trading day closed around 34.54 Moving in a range of 35.05-35.14 this morning. USDTHB could be closed between 34.80-35.20 today. The dollar hit a three-month month high against a basket of currencies on Tuesday after Federal Reserve Chair Jerome Powell said the U.S. central bank is likely to raise rates more than previously expected and warned that the process of getting inflation back to 2% has "a long way to go.“ The Fed is also prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control price increases, Powell told U.S. lawmakers on Tuesday. The Fed had slowed the pace of its tightening to 25 basis points at its last two meetings, following larger hikes last year. Fed funds futures traders are now pricing in a roughly 60% probability that the Fed will hike rates by 50 basis points at its March 21-22 meeting. The probability had been seen at around 22% earlier on Tuesday.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC