- USDTHB: moving in the range 36.055-36.105 this morning supportive level at 35.95 resistance level at 36.20
· SET Index: 1,382.5 (-0.25%), 19 Mar 2024
· S&P 500 Index: 5,149.4 (+0.63%), 18 Mar 2024
· Thai 10-year government bond yield (interpolated): 2.56 (+1.88 bps), 19 Mar 2024
· US 10-year treasury yield: 4.34 (+3.00 bps), 18 Mar 2024
- BOJ joins a rate-hike party that other big central banks have left
- US single-family housing starts, permits near two-year highs
- German investor morale improved more than expected in March
- Yen falls in defiance of historic BOJ shift; dollar firm
BOJ joins a rate-hike party that other big central banks have left Global interest rates are in flux. The Bank of Japan, a holdout dove as central banks across the developed world raised borrowing costs from late 2021, finally called time on its easy money era. Most other big central banks, in contrast, are on the brink of victory in their fight against inflation. Rate setters in the United States, Britain, Switzerland and Norway meet this week and may at least offer clues about when they will cut rates. The Bank of Japan ended eight years of negative interest rates. As well as bringing interest rates up to a range of 0-0.1%, the BOJ also abandoned yield curve control, where it purchased vast amounts of Japanese government bonds to cap state borrowing costs. With inflation exceeding the BoJ's target for over a year, a shift had been expected in March or April. Still, the moves were a mark of confidence from the BoJ that Japan has finally emerged
US single-family housing starts, permits near two-year highs U.S. single-family homebuilding rebounded sharply in February, hitting the highest level in nearly two years, boosted by mild temperatures and a persistent shortage of previously owned houses on the market. Despite the hurdle created for many first-time buyers by higher mortgage rates, builders are cutting prices and offering other incentives to increase sales. They are also reducing the size of the homes being built to manage higher material costs. The report from the Commerce Department also showed permits for the future construction of single-family housing units rose to more than a 1-1/2-year high last month. With mortgage rates gradually trending lower on expectations the Federal Reserve will start cutting interest rates by June, homebuilding could contribute to economic growth this year.
German investor morale improved more than expected in March German investor morale improved more than expected in March on expectations of an ECB interest rates cut and positive signs out of China. ZEW reported a rise in its economic sentiment index to 31.7 points from 19.9 in February, and the March figure exceeded analyst estimates in a Reuters poll for a reading of 20.5. Data on Monday showed that China's factory output and retail sales beat expectations in the January-February period, joining recent better-than-expected exports and consumer inflation indicators that together marked a solid start to this year. By comparison, ZEW's assessment of the current situation improved only slightly, rising to -80.5 from -81.7 last month and beating a fall to -82.0 that was predicted by analysts.
Yen falls in defiance of historic BOJ shift; dollar firm The 10-year government bond yield (interpolated) on the previous trading day was 2.56, +1.88 bps. The benchmark government bond yield (LB31DA) was 2.54, +2.0 bps. Meantime, the latest closed US 10-year bond yields was 4.34, +3.00 bps. USDTHB on the previous trading day closed around 36.04. Moving in a range of 36.055-36.105 this morning. USDTHB could be closed between 35.95-36.20 today. The yen tumbled after the Bank of Japan's momentous, but widely anticipated, decision to end its negative interest rate policy, while the dollar strengthened ahead of the Federal Reserve's latest outlook for rates. In a historic shift from decades of massive monetary stimulus, the Japanese central bank ended eight years of negative interest rates and other remnants of unorthodox economic policy after a two-day meeting of policymakers. As most investors had already priced in a change, the yen dropped by as much as 1% and weakened past 150 to the dollar after the news. The yen was last down about 1.02% at 150.66 to the dollar. Against the euro, the Japanese currency similarly slid 0.8% to 163.48, around its weakest in three weeks.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
