- USDTHB: moving in the range 34.625-34.795 this morning supportive level at 34.65 resistance level at 34.85
· SET Index: 1,534.8 (-0.40%), 30 May 2023
· S&P 500 Index: 4,205.5 (+0.00%), 30 May 2023
· Thai 10-year government bond yield (interpolated): 2.54 (-3.75 bps), 30 May 2023
· US 10-year treasury yield: 3.69 (-11.00 bps), 30 May 2023
- US consumer confidence dips to six-month low, labor market views soften
- Inflation in Tokyo slows in May, but key gauge hits four-decade high
- China manufacturing PMI shrinks further in May, dashing recovery bets
- Dollar to ride rate-hike expectations higher as focus set to shift to labor market
US consumer confidence dips to six-month low, labor market views soften U.S. consumer confidence slipped to a six-month low in May as Americans' assessment of the labor market softened, but more households planned to purchase motor vehicles and other big-ticket items over the next six months, which could support economic growth this quarter. The ebb in confidence reported by the Conference Board on Tuesday was concentrated among consumers aged 55 years and older, as well as among households with annual incomes in the $50,000-$99,000 range. Consumers expected inflation to stabilize at higher levels over the next year. The Conference Board's consumer confidence index slipped to 102.3 this month, the lowest level since last November, from an upwardly revised 103.7 in April. Economists polled by Reuters had expected the index to fall to 99 from the previously reported reading of 101.3.
Inflation in Tokyo slows in May, but key gauge hits four-decade high Core consumer inflation in Japan’s capital slowed in May, but a key index stripping away the effect of fuel hit a four-decade high, underscoring broadening price pressure that may keep alive expectations of a withdrawal of ultra-loose monetary policy. The data for Tokyo, which is seen as a leading indicator of nationwide trends, showed companies continued to pass on rising costs to households in a sign inflationary pressure could last longer than the Bank of Japan (BOJ) projects. The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 3.2% in May from a year earlier, government data showed on Friday, roughly matching a median market forecast for a 3.3% gain. While inflation slowed from the previous month’s 3.5%, it stayed above the BOJ’s 2% target for a full year as steady food price gains offset falling fuel costs, the data showed.
China manufacturing PMI shrinks further in May, dashing recovery bets Chinese manufacturing activity shrank for a second straight month in May, data showed on Wednesday, raising further questions over an economic rebound in the country as weak demand and slowing capital investment pressured the country's biggest economic engines. The official manufacturing purchasing managers’ index (PMI) read 48.8 in May, according to data from the National Bureau of Statistics. The figure was lower than expectations for a reading of 51.4 and the prior month’s reading of 49.2. A reading above 50 shows expansion in activity for the month, while a reading below indicates contraction. While China's manufacturing sector saw an initial boost in the first quarter after the lifting of anti-COVID measures, readings for April showed that this momentum was running out of steam.
Dollar to ride rate-hike expectations higher as focus set to shift to labor market The 10-year government bond yield (interpolated) on the previous trading day was 2.54, -3.75 bps. The benchmark government bond yield (LB31DA) was 2.58, -4.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.69, -11.00 bps. USDTHB on the previous trading day closed around 34.81 Moving in a range of 34.625-34.795 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar slipped Tuesday but could hitch a ride higher in the near term as investor focus is likely to shift from the debt ceiling to the jobs report later this week that could cement the prospect of a further Federal Reserve hike next month. The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.14% to 103.99. As the odds of another 25-basis-point hike from the Fed at next month’s FOMC meeting grow, MUFG said Tuesday that another “strong employment report this week would further reinforce those expectations and encourage a stronger U.S. dollar in the near-term.”
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC