- USDTHB: moving in the range 36.40-36.46 this morning supportive level at 36.35 resistance level at 36.55
· SET Index: 1,380.8 (+0.26%), 27 Mar 2024
· S&P 500 Index: 5,248.5 (+0.86%), 27 Mar 2024
· Thai 10-year government bond yield (interpolated): 2.54 (-0.72 bps), 27 Mar 2024
· US 10-year treasury yield: 4.20 (-4.00 bps), 27 Mar 2024
- S&P affirms United States 'AA+/A-1+' sovereign ratings on economic resilience
- BOJ policymakers saw need to go slow in future rate hikes, March summary shows
- China's industrial profits return to growth as conditions stabilize
- Japan's yen hits 34-year low, sparking intervention warnings
S&P affirms United States 'AA+/A-1+' sovereign ratings on economic resilience Global ratings agency S&P affirmed its "AA+" long-term and "A-1+" short-term unsolicited sovereign credit ratings on the US on and kept the outlook on the long-term rating as 'stable’. "A diversified and resilient economy with solid growth, extensive monetary policy flexibility, and benefits associated with the unique status as the issuer of the world's leading reserve currency underpin the US sovereign rating," S&P said. It expects the Federal Reserve System, which provides the US with considerable monetary policy flexibility, to navigate the challenges of lowering domestic inflation and addressing financial market vulnerabilities. Earlier in the month, peer Fitch affirmed United States' long-term foreign currency sovereign credit rating at "AA+" with a "stable" outlook.
BOJ policymakers saw need to go slow in future rate hikes, March summary shows Many Bank of Japan policymakers saw the need to go slow in phasing out ultra-loose monetary policy with one board member saying the economy's health did not warrant rapid interest rate hikes, a summary of opinions at the bank's March meeting showed. In making last week's historic decision to end negative interest rates, the board was divided on whether the economy was strong enough to weather the exit, the summary showed. The BOJ ended eight years of negative interest rates and other remnants of its unorthodox policy last week, making a landmark shift away from its focus on reflating growth with decades of massive monetary stimulus. The opinions shown in the summary underscore the BOJ's preference to move slowly in future interest rate hikes and could keep the Japanese yen under pressure as investors focus on the still large gap between US and Japanese interest rates.
China's industrial profits return to growth as conditions stabilize China's industrial firms posted higher profits in the opening months of the year, official data showed, reinforcing signs that an economic recovery was gaining traction despite persistent sluggishness in the property sector. Profits at China's industrial firms jumped 10.2% in the first two months from a year earlier, National Bureau of Statistics (NBS) data showed, following a 2.3% profit decline for the whole of 2023. The surge comes on the heels of upbeat indicators earlier this month that suggest a stabilization in Asia's largest economy. But overall gains remain tempered by the persistent fragility in China's property market, pointing to a divergence in the country's post-pandemic recovery.
Japan's yen hits 34-year low, sparking intervention warnings The 10-year government bond yield (interpolated) on the previous trading day was 2.54, -0.72 bps. The benchmark government bond yield (LB31DA) was 2.555, -0.50 bps. Meantime, the latest closed US 10-year bond yields was 4.25, +3.00 bps. USDTHB on the previous trading day closed around 36.34. Moving in a range of 36.40-36.46 this morning. USDTHB could be closed between 36.35-36.55 today. The yen dropped to its lowest level since 1990 on Wednesday before rebounding slightly after Japan's top monetary officials met to discuss the rapidly weakening currency and suggested they were ready to intervene. The dollar reached 151.975 yen, its strongest against the yen since mid-1990, before easing 0.13% on the day to 151.36. The Bank of Japan, the Finance Ministry and Japan's Financial Services Agency held a meeting in Tokyo's late trading hours, after which top currency diplomat Masato Kanda said he "won't rule out any steps to respond to disorderly FX moves.“ Japanese authorities stepped in to defend the yen at 151.94 in 2022 and Finance Minister Shunichi Suzuki on Wednesday used the same words that preceded that intervention, warning Japan would take "decisive steps" against excessive currency moves.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
