- USDTHB: moving in the range 34.58-34.67 this morning supportive level at 34.50 resistance level at 34.75
· SET Index: 1,428.0 (-0.46%), 5 Jan 2024
· S&P 500 Index: 4,697.2 (+0.18%), 5 Jan 2024
· Thai 10-year government bond yield (interpolated): 2.79 (+4.60 bps), 5 Jan 2024
· US 10-year treasury yield: 4.05 (+6.00 bps), 5 Jan 2024
- US economy cranks out jobs at brisk clip in December; wages increase
- US service sector slows in December as employment plummets
- Euro zone inflation jump cools case for ECB rate cuts
- Dollar gains vs most currencies as US nonfarm payrolls loom
US economy cranks out jobs at brisk clip in December; wages increase Nonfarm payrolls increased by 216,000 jobs last month, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls rising by 170,000 jobs. The economy added 2.7 million jobs in 2023, a sharp step-down from the 4.8 million positions created in 2022. That reflected cooling demand in the economy following 525 basis points worth of rate hikes from the US central bank since March 2022. Roughly 100,000 jobs per month are needed to keep up with growth in the working age population. Government hiring as state and local authorities try to bring education staffing back to pre-pandemic levels led the rise in employment last month, with 52,000 jobs added.
US service sector slows in December as employment plummets The US services sector slowed considerably in December, with a measure of employment dropping to the lowest level in nearly 3-1/2 years. The Institute for Supply Management (ISM) said that its non-manufacturing PMI fell to 50.6 last month, the lowest reading since May, from 52.7 in November. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the index little changed at 52.6. Demand for services initially surged as Americans resumed normal lives after COVID-19 lockdowns. But momentum has ebbed, with spending swinging back to goods. Spending on goods far outpaced outlays on services in the third quarter.
Euro zone inflation jump cools case for ECB rate cuts Euro zone inflation jumped as expected last month, supporting the European Central Bank’s case to keep interest rates at record highs for some time, even as markets continued to bet on a rapid fall in borrowing costs. Inflation across the 20-nation bloc jumped to 2.9% in December from 2.4% in November, just shy of expectations for a 3.0% reading, mostly on technical factors, such as the end of some government subsidies and low energy prices getting knocked from base figures. The data is in line with the ECB's prediction that inflation bottomed out in November and will now hover in the 2.5% to 3% range through the year, well above its 2% target, before falling to target in 2025. Still, figures suggested that the structure of inflation is changing and while base and fiscal effects could yank around the headline figure, overall pressures may be easing.
Dollar gains vs most currencies as US nonfarm payrolls loom The 10-year government bond yield (interpolated) on the previous trading day was 2.79, +4.60 bps. The benchmark government bond yield (LB31DA) was 2.735, +4.50 bps. Meantime, the latest closed US 10-year bond yields was 4.05, +6.00 bps. USDTHB on the previous trading day closed around 34.59 Moving in a range of 34.58-34.67 this morning. USDTHB could be closed between 34.50-34.75 today. The dollar rose against most currencies on Thursday in choppy trading, bolstered by better-than-expected US labor market data that dampened expectations of multiple interest rate cuts by the Federal Reserve this year. A crucial nonfarm payrolls report could guide the outlook on Fed policy easing. Economists polled by Reuters forecast that 170,000 jobs were created in December, fewer than the 199,000 the month before. The US currency gained on news that US private employers hired more workers than expected in December. Private payrolls increased by 164,000 jobs last month, the ADP National Employment Report showed, the largest monthly increase since August. Economists polled by Reuters had forecast private payrolls rising by 115,000. Initial claims for state unemployment benefits dropped by 18,000 to a seasonally adjusted 202,000 for the week ended Dec. 30, also bolstering the dollar.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
