- USDTHB : moving in the range 33.10 – 33.23 this morning, USDTHB at current level might be possible long entry. Hawkish Fed may likely continue to drive USDTHB in medium term, supporting level of USDTHB is around 33.00
- SET Index: 1,660.3 (-0.99%), 18 Jan 2022
- S&P 500 Index: 4,577.1 (-1.86%), 18 Jan 2022
- Thai 10-year government bond yield (interpolated) : 2.20% +6.00 bps), 18 Jan 2022
- US 10-year treasury yield: 1.87 (+9.00bps), 18 Jan 2022
- China cenbank to roll out more policy moves to stabilise growth
- Euro zone inflation to burn hotter, but ECB rates to stay on ice: Reuters poll
- Even as Omicron slams Canada, bets on January rate hike rise
- Dollar posts best daily gain in two weeks, boosted by U.S. Treasury yields
China cenbank to roll out more policy moves to stabilise growth
China's central bank will roll out more policy measures to stabilise the economy and move ahead of the market curve as downward pressure persists, vice governor Liu Guoqiang said on Tuesday, following the latest rate cut. The world's second-largest economy, which cooled over the course of last year, faces multiple headwinds in 2022, including persistent property weakness and a fresh challenge from the recent local spread of the highly contagious Omicron variant. Liu said the central bank would widen the use of its policy tools to prevent a "collapse" in credit. Liu said there was still room for the central bank to cut banks' reserve requirement ratios (RRR), although the scope for this had been reduced by cuts in the past.
Euro zone inflation to burn hotter, but ECB rates to stay on ice: Reuters poll
Euro zone inflation is set to burn hotter throughout 2022 than expected a month ago, according to economists polled by Reuters, which could pressure the European Central Bank to tighten policy once the Omicron wave of the pandemic passes. Forecasts for inflation this year have risen for the seventh consecutive survey -- up by 0.6 percentage points each for the first and second quarters to 4.1% and 3.7% respectively, well above the ECB's 2.0% target. Annual consumer price rises hit a record high of 5% last month. But the ECB has resisted calls for tighter policy, sticking to the view that price pressures will ease this year. So nearly every economist expected policy interest rates to hold steady well into next year.
Even as Omicron slams Canada, bets on January rate hike rise
Canadian restrictions to tackle COVID-19 will likely come at a cost of slower economic growth at the start of the year than in the United States, but that has not stopped investors from raising bets the Bank of Canada will hike interest rates next week. Economists at some of the large Canadian banks expect little or no GDP growth in Canada in the first quarter compared to estimates of about 4% to 5% before the emergence of the variant. But economists also say that activity is likely to rebound quickly when restrictions are lifted. Nearly 70% of Investors expect an earlier move than the Canadian central bank has been signaling and a quicker lift-off than in the United States where the Federal Reserve is not expected to raise rates until March.
Dollar posts best daily gain in two weeks, boosted by U.S. Treasury yields
The 10-year government bond yield (interpolated) on the previous trading day was 2.22, +8.00 bps. The benchmark government bond yield (LB31DA, 9.8 years) was 2.20, +6.00 bps. LB31DA could be between 2.20-2.26. Meantime, the latest closed US 10-year bond yields was 1.87%, +9.00bps. USDTHB on the previous trading day closed around 33.12 Moving in a range from 33.10-33.23 this morning. USDTHB could be closed between 33.15-33.25 today. Meantime, The dollar posted its best daily gain in two weeks on Tuesday following a jump in benchmark U.S. Treasury yields, while the yen steadied after initially sliding as the Bank of Japan said it would stick to its ultra-loose monetary policy.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
