- USDTHB: moving in the range 37.03-37.09 this morning supportive level at 36.85 resistance level at 37.15
· SET Index: 1,349.5 (+1.30%), 22 Apr 2024
· S&P 500 Index: 5,010.6 (+0.87%), 22 Apr 2024
· Thai 10-year government bond yield (interpolated): 2.72 (+0.07 bps), 22 Apr 2024
· US 10-year treasury yield: 4.62 (+0.00 bps), 22 Apr 2024
- Fed survey cites inflation, US election as key financial stability risks
- Japan's March core inflation slows, weak yen complicates BOJ move
- China leaves benchmark lending rates unchanged, in line with expectations
- Dollar hands back gains after Israeli strike; weekly gains likely
Fed hawks and doves: US central bankers see 'no urgency' to cut The labels "dove" and "hawk" have long been used by central bank watchers to describe the monetary policy leanings of policymakers, with a dove more focused on risks to the labor market and a hawk more focused on the threat of inflation. The topsy-turvy economic environment of the COVID-19 pandemic sidelined those differences, turning Federal Reserve officials at first universally dovish as they sought to provide massive accommodation for a cratering US economy, and then, when inflation surged, into hawks who uniformly backed aggressive interest rate hikes. The risks are now seen as more balanced and the choices more nuanced. All 12 regional Fed presidents debate monetary policy at FOMC meetings that are held eight times a year, but only five cast votes at any given meeting.
Japan's factory activity declines slow, PMI shows Japan's factory activity contracted but approached the break-even point in April, a business survey showed on Tuesday, suggesting the key sector is finally picking up after months of sluggishness. The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) rose to 49.9 in April from 48.2 in March, remaining below the 50.0 threshold separating growth from contraction for 11 straight months. Still, the index was closest to the break-even level since slipping into contraction in June, the data showed. The output and new orders, the two key subindexes contributing to the headline figure, contracted at the slowest pace in six and 10 months, respectively.
BOJ will hike rates if trend inflation accelerates, Gov Ueda says Bank of Japan Governor Kazuo Ueda said on Tuesday the central bank will raise interest rates again if trend inflation accelerates toward its 2% target, in line with its forecast. "If our price forecasts change, that would also be a reason to change monetary policy. But we don't have any preset idea on the specific timing and pace" of rate hikes, Ueda told parliament. He also said the BOJ must maintain ultra-loose monetary policy for the time being as trend inflation, or price rises driven by domestic demand and measured by scrutinising various indicators, remains "somewhat below 2%". Ueda's remarks comes ahead of the BOJ's two-day policy meeting that ends on Friday, when the board is set to keep interest rates unchanged and announce fresh quarterly growth and inflation forecasts.
Dollar touches new 34-year peak vs yen on US rate outlook The 10-year government bond yield (interpolated) on the previous trading day was 2.72, +0.07 bps. The benchmark government bond yield (LB31DA) was 2.71, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.62, +0.00 bps. USDTHB on the previous trading day closed around 36.99. Moving in a range of 37.03-37.09 this morning. USDTHB could be closed between 36.85-37.15 today. The US dollar climbed to a fresh 34-year peak against the yen in quiet trading on Monday, with investors taking their cue from the Federal Reserve's higher-for-longer interest rate stance, even as they remained alert to any signs of intervention by Japan to prop up its struggling currency. The dollar rose to 154.85 yen versus the Japanese currency, its highest since mid-1990. It was last up 0.1% at 154.82 yen, a whisker away from the 155-level that is next on traders' radars for possible intervention. The yen hit fresh lows ahead of the Bank of Japan's (BOJ) policy meeting on Friday. Market players took note of the fact that Japan has refrained from intervening in the currency market despite the yen hitting several 34-year lows this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
