- USDTHB : moving in the range 32.92 – 32.97 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 32.85, resistance level is around 33.00, 33.20
- SET Index: 1,677.2 (+0.18%), 7 Feb 2022
- S&P 500 Index: 4,483.9 (-0.37%), 7 Feb 2022
- Thai 10-year government bond yield (interpolated) : 2.19% (+2.00 bps), 7 Feb 2022
- US 10-year treasury yield: 1.92 (-1.00bps), 7 Feb 2022
- U.S. rate hikes could hit highly dollarized emerging market banks - Moody's
- Euro zone inflation could subside before becoming entrenched: Lagarde
- UK consumers slowed their spending as COVID rules returned in January
- Euro bounce pauses ahead of U.S. inflation
U.S. rate hikes could hit highly dollarized emerging market banks - Moody's
Banks in Latin America and emerging Europe are most exposed to dollarization among developing economies, making them vulnerable to weaker local currencies and increasing withdrawals in the face of tighter U.S. monetary policy, Moody's said on Monday. Interest rate hikes from the U.S. Federal Reserve are likely to slow capital flows to emerging markets, weakening countries' currencies and economic growth, and potentially triggering credit risk at highly dollarized banks, Moody's said. Moody's found that dollar deposits are highest across banks in Latin America, emerging Europe and the former Soviet countries, though relatively low in Asia Pacific and moderate in Africa. Higher exposure in Gulf states is offset by strong foreign currency reserves.
Euro zone inflation could subside before becoming entrenched: Lagarde
Euro zone inflation risks are on the rise but price pressures could still subside before becoming entrenched in expectations, ECB’s Christine Lagarde said on Monday. Pointing to mounting inflation risks, Lagarde opened the door last week to an interest rate hike later in 2022 and said that a March 10 meeting will be crucial in deciding how quickly the bank would wind down its long-running bond buying scheme. "We have to bear in mind that demand conditions in the euro area do not show the same signs of overheating that can be observed in other major economies," Lagarde told. While Lagarde herself did not commit to any decision, several policymakers argued that the first move will be to speed up an exit from the bond buying scheme, which run indefinitely until October.
UK consumers slowed their spending as COVID rules returned in January
British consumers slowed the pace of their spending last month as the Omicron COVID-19 wave hit fuel sales and kept people away from bars and restaurants, according to a survey which also pointed to the impact of rising inflation. Consumer spending was 7.4% higher than in January 2020 - before the pandemic - the weakest increase since April last year, Barclaycard said. Britain's inflation rate hit a 30-year high of 5.4% in December and looks set to top 7% in April, according to the Bank of England which last week raised interest rates for the second time in two months and said further increases were likely. Advice to work from home, along with rules on mask-wearing and vaccine passes, were lifted in England on Jan. 26, six weeks after they were introduced.
Euro bounce pauses ahead of U.S. inflation
The 10-year government bond yield (interpolated) on the previous trading day was 2.19, +2.00 bps. The benchmark government bond yield (LB31DA) was 2.18, +3.00 bps. LB31DA could be between 2.15-2.21. Meantime, the latest closed US 10-year bond yields was 1.92%, -1.00bps. USDTHB on the previous trading day closed around 33.03 Moving in a range from 32.92-32.97 this morning. USDTHB could be closed between 32.85-32.95 today. Meantime, A resurgent euro was hunkered just short of strong resistance levels on Tuesday as traders awaited U.S. inflation data due later in the week, wary it could trigger gains in the dollar.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
