- USDTHB: moving in the range 35.79-35.93 this morning, supporting level of USDTHB is around 35.85 resistance level is around 36.00
- SET Index: 1,643.5 (+0.73%), 25 Aug 2022
- S&P 500 Index: 4,199.1 (+1.40%), 25 Aug 2022
- Thai 10-year government bond yield (interpolated): 2.54 (+0.02 bps), 25 Aug 2022
- US 10-year treasury yield: 3.03 (-8.00 bps), 25 Aug 2022
- US Economy in Q2 shrinks less than expected
- ECB to Continue to Raise Rates
- Thailand trade gap largest in 3-1/2 Years
- Dollar Steadies as Powell Speech Awaited
US Economy in Q2 shrinks less than expected
The US economy contracted an annualized 0.6% on quarter in Q2
2022, less than a 0.9% fall in the advance estimate due to upward revisions to
consumer spending and inventories and following a 1.6% drop in Q1. Private
consumption expenditure grew 1.5%, higher than 1% in the advance estimate, led
by food services and accommodations while spending on goods went down 2.4%,
namely food and beverages. Also, private inventory investment was revised
higher though remained a drag mainly due to retail trade. Net trade made a
positive contribution for the first time in 2 years, as exports jumped 17.6%,
led by industrial supplies, materials and travel while imports were up 2.8%.
Meanwhile, residential investment sank 16.2%, mainly due to real estate
brokers' commissions. Investment also fell for structures -13.2% and
equipment -2.7%, the same as in the advance estimate.
ECB to Continue to Raise Rates ECB policymakers noted that the 50bps rate hike delivered in July should be regarded as frontloading the exit from negative rates and necessary to normalize monetary policy, rather than indicating a change in the rate to be expected as the end-point of the normalization cycle, minutes from the ECB's July 2022 meeting showed. At the same time, additional increases in borrowing costs will be made on a meeting-by-meeting basis and will be data-dependent, although further hikes should be appropriate in upcoming meetings. Meanwhile, ECB policymakers considered that inflation risks have increased and noted a downturn in euro area economic activity could extend into 2023. The ECB raised its 3 key interest rates by 50bps during its July 2022 meeting, the first increase since 2011, ending eight years of negative rates in order to release the inflationary pressures.
Thailand trade gap largest in 3-1/2 Years Thailand recorded a trade deficit of USD 3.66 billion in July 2022, compared to market consensus of USD 1.6 billion gap while shifting from a surplus of USD 0.62 billion in the same month a year earlier. This was the fourth straight month of shortfall in trade balance, and the largest gap since January 2019 with imports rising much faster than exports. Inbound shipments soared 23.9 percent year-on-year, while outbound shipments grew by 4.3 percent.
Dollar Steadies as Powell Speech Awaited The 10-year government bond yield (interpolated) on the previous trading day was 2.54, +0.02 bps. The benchmark government bond yield (LB31DA) was 2.43, +1.0 bps. LB31DA could be between 2.40-2.45. Meantime, the latest closed US 10-year bond yields was 3.03, -8.00 bps. USDTHB on the previous trading day closed around 35.89 Moving in a range of 35.79-35.93 this morning. USDTHB could be closed between 35.85-36.00 today. The dollar index steadied around 108.5 on Friday, holding less than 1% below 20-year highs, as traders braced for Federal Reserve Chair Jerome Powell’s highly-anticipated speech at the Jackson Hole symposium later today for guidance on the central bank’s tightening plans.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
