- USDTHB : moving in the range 35.35 – 35.45 this morning, supporting level of USDTHB is around 35.35 resistance level is around 35.48
- SET Index: 1,560.0 (-0.93%), 22 Jun 2022
- S&P 500 Index: 3,759.9 (-0.13%), 22 Jun 2022
- Thai 10-year government bond yield (interpolated) : 2.94% (-0.94 bps), 22 Jun 2022
- US 10-year treasury yield: 3.16 (-15.00 bps), 22 Jun 2022
- Powell warns US recession is ‘certainly a possibility’
- US Mortgage Applications Rise for 2nd Week
- ECB is expected to raise deposit rate to 0.75% by year-end
- Asia shares struggle, oil falls as recession fears linger
Powell warns US recession is ‘certainly a possibility’ In testimony to the Senate banking committee on Wednesday, Jay Powell said a US recession is “certainly a possibility” and warned that avoiding a downturn largely depends on factors outside the Federal Reserve’s control. He argued the US was sufficiently resilient to withstand tougher monetary policy without sliding into a downturn but acknowledged that outside factors, such as the war in Ukraine and China’s Covid-19 policy, could further complicate the outlook. The question of whether the Fed would be able to accomplish 2 per cent inflation is going to depend on the factors that the Fed can’t control. “There’s nothing inevitable about a recession,” said President Joe Biden. Meantime, Fed officials have also begun to prepare market participants for at least one more 0.75 percentage point rate rise at their next meeting in July.
US Mortgage Applications Rise for 2nd Week
Mortgage applications in the US increased 4.2% in the week ended
June 17th, following a 6.6% rise in the previous period driven by a 7.9% surge
in conventional applications. Meanwhile, the refinancing index fell 3.1% as the
average rate on a 30-year fixed-rate mortgage rose by 33bps to 5.98%, the
highest since November 2008. Compared to a year earlier, applications declined
10%. Meanwhile, the average loan size, at just over $420,000, is well below its
$460,000 peak earlier this year and is potentially a sign that home price
growth is moderating.
ECB is expected to raise deposit rate to 0.75% by year-end A strong majority of 91% or 50 of 55 economists expected the European Central Bank to hike its policy rate by 50 basis points in September. About 60% or 33 of 55 economists saw another 25 basis point hike in October and about 85% or 47 of 55 expected the same rise in December, bringing the deposit rate to 0.75% by end-year. While economists say euro zone inflation is yet to peak the ECB has given itself some room to catch up with its global peers, who are rapidly hiking rates to neutral, by planning a new instrument to limit the divergence in the bloc's bond yields.
Asia shares struggle, oil falls as recession fears linger
The 10-year government bond yield (interpolated) on the previous
trading day was 2.94, -0.94 bps. The benchmark government bond yield (LB31DA)
was 2.87, -1.00 bps. LB31DA could be between 2.82-2.92. Meantime, the latest
closed US 10-year bond yields was 3.16, -15.00 bps. USDTHB on the previous
trading day closed around 35.47 Moving in a range of 35.35-35.45 this morning.
USDTHB could be closed between 35.35-35.48 today. Asian shares wobbled while
commodity prices fell on Thursday as mounting worries about the risks of a
global recession amid aggressive rate hikes by the Fed. WTI crude futures fell
below $104 per barrel on Thursday, extending a sharp decline from the previous
session.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
