- USDTHB: moving in the range 33.78-33.86 this morning supportive level at 33.70 resistance level at 34.00
- SET Index: 1,443.1 (-0.31%), 11 Dec 2024
- S&P 500 Index: 6,084.2 (+0.81%), 11 Dec 2024
- Thai 10-year government bond yield (interpolated): 2.320 (+1.35 bps), 11 Dec 2024
- US 10-year treasury yield: 4.26 (+4.00 bps), 11 Dec 2024
- US CPI brings no surprises, firming up Fed rate-cut bets
- Bank of Canada cuts main interest rate to 3.25%
- Exclusive-Chinese authorities are considering a weaker yuan as Trump trade risks loom
- Thai cabinet approves measures to ease household debt
- Dollar higher after CPI; China considers letting yuan weaken
US CPI brings no surprises, firming up Fed rate-cut bets
US CPI November report printed in line with estimates across all major metrics which cemented calls for a 25bps Fed rate cut next Wednesday. Both the headline CPI and the core CPI rose 0.3% from October, matching economists’ forecasts. The year-on-year increases also slotted in as projected, with CPI up 2.7% and the core CPI 3.3% higher. The report suggested that disinflation has essentially stalled in recent months. Headline CPI notched the first back-to-back annual acceleration since March, while core has been stuck. Food and used vehicle prices were among the components pushing up the CPI in November, along with medical care. Meanwhile, Shelter costs as usual made up the main portion of the rise in CPI, although they did slow from the previous month.
Bank of Canada cuts main interest rate to 3.25%
The Bank of Canada cut rates by 50bps, taking the target for the overnight rate to 3.25%, in line with expectations and now matching the top end of the BoC's neutral rate estimate. The BoC also removed language from the statement about it being reasonable to expect further rate cuts if the economy evolves.
Exclusive-Chinese authorities are considering a weaker yuan as Trump trade risks loom
China's top leaders and policymakers are considering allowing the yuan to weaken in 2025 in anticipation of higher trade tariffs under a potential second term for Donald Trump as U.S. president. This possible move indicates China's recognition of the need for a stronger economic stimulus to counteract the threat of increased tariffs from Trump, according to sources familiar with the matter.
Thai cabinet approves measures to ease household debt
Thailand's cabinet on Wednesday approved debt support measures, including interest suspensions and reduced principal payments, to help tackle household debt. The measures will help retail borrowers and smaller businesses. Finance Minister Pichai Chunhavajira told reporters the cabinet also agreed to allow banks to pay a reduced annual contribution of 0.23% of their deposits to the Financial Institutions Development Fund (FIDF) for three years. The reduced FIDF contributions would help banks support debtors. The measures will help borrowers with debts that are up to a year overdue, covering housing loans of up to 5 million baht ($148,060), car loans not exceeding 800,000 baht and smaller firms' loans of up to 5 million.
Dollar higher after CPI; China considers letting yuan weaken
The 10-year government bond yield (interpolated) on the previous trading day was 2.32, +1.35 bps. The benchmark government bond yield (LB346A) was 2.29, +1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.26, +4.00 bps. USDTHB on the previous trading day closed around 33.77, moving in a range of 33.78 – 33.86 this morning. USDTHB could be closed between 33.70 – 34.00 today. The dollar saw broad gains against major peers with it initially benefitting off reports that China's top policymakers are considering allowing the yuan to weaken in 2025. The euro was hit on Buck strength as EUR/USD fell back below 1.05. News flow continued to be thin in the region, although, Thursday will see updates kick-off, with the ECB expected to cut by 25bps. The Japanese yen saw a volatile session in midweek as mixed BoJ remarks hit the wires. Chinese yuan eased off weekly highs as reports suggest China's top policymakers are considering allowing the yuan to weaken in 2025 as Trump tariffs loom.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
