- USDTHB : moving in the range 33.25 – 33.32 this morning, USDTHB at 33.30 might be possible short entry. But hawkish Fed may likely continue to drive USDTHB in medium term, supporting level of USDTHB is around 33.00, 32.85, resistance level is around 33.30, 33.60
- SET Index: 1,634.2 (-0.57%), 27 Jan 2022
- S&P 500 Index: 4,326.5 (-0.54%), 27 Jan 2022
- Thai 10-year government bond yield (interpolated) : 2.16% +2.00 bps, 27 Jan 2022
- US 10-year treasury yield: 1.81 (-4.00bps), 27 Jan 2022
- U.S. banks look forward to 'bread-and-butter' growth as economy rebounds
- Bank of Canada 'no hike' leaves housing fire burning, say market watchers
- IMF urges Japan to scale back pandemic support, raise taxes in long run
- Dollar Down but remains above 97-mark as bets on multiple Fed hikes increase
U.S. banks look forward to 'bread-and-butter' growth as economy rebounds
U.S. banks will enjoy stronger growth this year from their "bread-and-butter" business of taking deposits and lending money as the U.S. economy expands and the Federal Reserve prepares to raise interest rates for the first time in three years. Net interest income declined during the pandemic due to interest rate cuts and a drop in borrowing. But this is about to change in 2022. JPMorgan Chase told analysts that net interest income from its businesses beyond securities markets could increase to $50 billion in 2022 from $44.5 billion last year, a 12% increase. Some banks will benefit more than others depending on their ability to retain low-cost deposits and use them to lend and invest in higher-yielding securities. Banks with portfolios weighted toward floating-rate loans will benefit more.
Bank of Canada 'no hike' leaves housing fire burning, say market watchers
The Bank of Canada's decision to delay a rate hike for five more weeks will add fuel to Canada's scorching housing market as buyers scramble to clinch deals before borrowing costs rise, realtors said. The Bank of Canada held its overnight rate at a record low 0.25% on Wednesday, but warned multiple increases would be coming soon. Canada's housing market has been on tear throughout much of the pandemic, with prices up 39% nationwide from February 2020 to December 2021. In November and December alone, home prices jumped 4.5%, compared with a 3.7% gain in all of 2019. Forecasts are mixed for 2022, with the Royal Bank of Canada seeing home prices up 3% this year and brokerage Royal LePage forecasting a 10.5% gain.
IMF urges Japan to scale back pandemic support, raise taxes in long run
The International Monetary Fund urged Japan on Friday to scale back emergency pandemic support, and consider raising taxes on property and capital income once the economy's recovery from the coronavirus pandemic-induced doldrums is firmly in place. Japan's economic recovery is likely to strengthen this year, though the balance of risks is tilted to the downside, it said. Once the recovery is firmly in place, Japan must resume efforts to rein in its huge debt such as by cutting ballooning medical costs for a rapidly ageing population, it said. Raising the consumption tax rate from the current 10%, as well as hiking property and capital income taxes, could also be among options, the IMF said. On monetary policy, the IMF urged the Bank of Japan to maintain its massive stimulus programme and stand ready to cut interest rates if inflation momentum remains weak.
Dollar Down but remains above 97-mark as bets on multiple Fed hikes increase
The 10-year government bond yield (interpolated) on the previous trading day was 2.16, +2.00 bps. The benchmark government bond yield (LB31DA) was 2.15, +3.00 bps. LB31DA could be between 2.12-2.17. Meantime, the latest closed US 10-year bond yields was 1.81%, -4.00bps. USDTHB on the previous trading day closed around 33.20 Moving in a range from 33.25-33.32 this morning. USDTHB could be closed between 33.20-33.30 today. Meantime, The dollar was down on Friday morning in Asia but was headed towards its best week in seven months. The U.S. currency broke through key levels against the euro after investors increased bets on multiple U.S. interest rate hikes in 2022.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
