- USDTHB: moving in the range 37.83-37.94 this morning, supportive level at 37.60 resistance level at 38.20
· SET Index: 1,621.3 (-0.64%), 26 Sep 2022
· S&P 500 Index: 3,655.0 (-1.04%), 26 Sep 2022
· Thai 10-year government bond yield (interpolated): 3.17 (+5.44 bps), 26 Sep 2022
· US 10-year treasury yield: 3.88 (+19.00 bps), 26 Sep 2022
- U.S. labor market resilient as recession signals grow stronger
- Euro Area composite PMI shrinks for 3rd month
- Thailand's exports rose slightly in August
- Dollar hits the 114 mark for the first time since May 2020, Sterling plunges to all-time low
U.S. labor market resilient as recession signals grow stronger According to the Labor Department reported on September 22. The number of unemployment applications climbed to 213,000, above the prior week’s revised 208,000. The four-week moving average was 216,750, down 6,000 from the previous period. The number of workers continuing to claim unemployment benefits nearly 1.4 million, which has been steadily rising this year but is still well below the pre-pandemic average of 1.7 million. The unemployment rate in August rose to 3.7% from a 50-year low in July, but the increase included a surge in the number of people actively looking for work, a sign of a healthy labor market. Overall, the generally low level of jobless claims overall signifies strong labor demand as companies try to attract and retain employees.
Euro Area composite PMI shrinks for 3rd month The Global Flash Eurozone Composite PMI fell to 48.2 in September of 2022 from 48.9 in August, pointing to a third consecutive month of contraction in private sector activity, flash estimates showed. Excluding the pandemic shocks, the reading was the lowest since May 2013. Both services and manufacturing extended the decline. Meanwhile, new orders fell the most since April of 2013 barring periods of pandemic restrictions and backlogs of uncompleted orders fell for a third month. At the same time, after four months of cooling, output inflation also accelerated as firms sought to protect margins. Business expectations fell to the lowest since May of 2020 concerns over soaring energy prices and the detrimental impact of rising inflation on firms’ costs and customer demand.
Thailand's exports rose slightly in August According to Ministry of Commerce data released, export value rose 7.5%yoy in August, against July's 4.3%yoy increase. In August, exports of agriculture and agro-industrial products increased 4.6%yoy, led by rice, sugar, and canned and processed seafood. Industrial product exports also increased 9.2%yoy, but oil-related goods fell 11.4%yoy. Export to primary markets expanded by 8.3yoy, led by exports to the U.S., ASEAN (5), CLMV, EU (27), and Japan, while exports to China decreased by 20.1%yoy. On the flip page, August imports surged 21.3%yoy with a trade deficit of $4.2 billion. During January-August, exports rose 11.0%yoy and import rose 21.4%yoy.
Dollar hits the 114 mark for the first time since May 2020, Sterling plunges to all-time low The 10-year government bond yield (interpolated) on the previous trading day was 3.17, +5.44 bps. The benchmark government bond yield (LB31DA) was 2.95, +15.00 bps. LB31DA could be between 2.90-3.00. Meantime, the latest closed US 10-year bond yields was 3.88, +19.00 bps. USDTHB on the previous trading day closed around 37.79 Moving in a range of 37.83-37.94 this morning. USDTHB could be closed between 37.60-38.20 today. The dollar index hit the 114 mark for the first time since May 2020, lifted by the Fed’s aggressive plan to stamp out inflation and escalating risk of a global recession. The Fed raised interest rates by 75 bps. for a third consecutive meeting last week and forecasted rates to peak at 4.6% next year with no cuts until 2024, putting an end to all hopes for a dovish pivot. However, Sterling against dollar tumbled as low as $1.0327, an all-time low, as investors worried Britain's new economic plan will hurt the country's finances.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
