- USDTHB: moving in the range 35.415-35.52 this morning supportive level at 35.35 resistance level at 35.65
· SET Index: 1,380.2 (-0.45%), 11 Mar 2024
· S&P 500 Index: 5,117.9 (-0.11%), 11 Mar 2024
· Thai 10-year government bond yield (interpolated): 2.49 (-3.34 bps), 11 Mar 2024
· US 10-year treasury yield: 4.10 (+1.00 bps), 11 Mar 2024
- JPMorgan's Dimon urges US Fed to wait past June before cutting rates
- BOJ chief Ueda slightly tones down optimism on economy
- Japan PPI inflation up more than expected in Feb, furthers BOJ pivot bets
- Dollar ends week under pressure as data keeps rate cut hopes alive
JPMorgan's Dimon urges US Fed to wait past June before cutting rates JPMorgan Chase CEO Jamie Dimon urged the Federal Reserve to wait until after June before cutting interest rates, arguing the central bank needs to shore up its inflation-fighting credibility. "I think they have to be data-dependent. If I were them, I would wait," Dimon said at the Australian Financial Review business summit via a livestream from New York. "You can always cut it quickly and dramatically. Their credibility is a little bit at stake here. I would even wait past June and let it all sort it out.“ Markets see an 84% probability the Fed will lower rates in June and have priced in 90 basis points of cuts for the year. Dimon said the U.S. economy was doing so well it could almost be characterised as a boom, but cautioned against the wholesale embrace of the soft landing narrative by markets. He put the odds of a recession of some sort at about 65% and refused to rule out the possibility of stagflation.
BOJ chief Ueda slightly tones down optimism on economy Bank of Japan Governor Kazuo Ueda said on Tuesday the economy was recovering but also showing some signs of weakness, offering a slightly bleaker assessment than in January in a nod to a recent batch of soft data on consumption. The remarks come ahead of the central bank's policy meeting next week, where the board will debate whether the outlook is bright enough to phase out its massive monetary stimulus. Speaking in parliament on Tuesday, Ueda said consumption was weakening for food and daily necessities amid higher prices. But he said household spending was improving moderately on hopes for higher wages ahead. Ueda offered few clues on how soon the BOJ would end negative rates, a policy that has been in place since 2016.
Japan PPI inflation up more than expected in Feb, furthers BOJ pivot bets Japanese producer inflation grew more than expected in February, further factoring into expectations that the Bank of Japan was close to ending its ultra-dovish policy and hiking interest rates. Producer price index inflation rose 0.2% month-on-month. The reading was higher than expectations of 0.1%, and also picked up from a flat print in the prior month. Year-on-year PPI inflation rose 0.6% in February, in line with expectations, but higher than the 0.2% seen in January. The reading comes just a week after a strong consumer price index inflation reading from Tokyo, which usually heralds a similar trend in nationwide inflation. Tuesday's reading also saw PPI inflation rebound from an over two-year low, indicating that factory gate inflation may now be picking up after an extended downturn over the past year.
Dollar ends week under pressure as data keeps rate cut hopes alive The 10-year government bond yield (interpolated) on the previous trading day was 2.49, -3.34 bps. The benchmark government bond yield (LB31DA) was 2.52, -3.5 bps. Meantime, the latest closed US 10-year bond yields was 4.10, +1.00 bps. USDTHB on the previous trading day closed around 35.43 Moving in a range of 35.415-35.52 this morning. USDTHB could be closed between 35.35-35.65 today. The dollar traded modestly weaker against most major peers on and was on pace for its worst weekly showing against the euro this year after mixed data kept an anticipated June interest rate cut from the Federal Reserve on the table. Nonfarm payrolls increased by 275,000 jobs last month, the labor department's Bureau of Labor Statistics said in its closely watched employment report on Friday. Data for January was revised down to show 229,000 jobs created instead of 353,000 as previously reported. The unemployment rate rose to 3.9% in February after holding at 3.7% for three straight months. The euro was 0.06% lower against the dollar at $1.09425. The common currency hit an eight-week high earlier in the session.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
