- USDTHB: moving in the range 33.06-33.15 this morning, supportive level at 33.00 resistance level at 33.25
· SET Index: 1,687.5 (+0.00%), 12 Jan 2023
· S&P 500 Index: 3,983.2 (+0.34%), 12 Jan 2023
· Thai 10-year government bond yield (interpolated): 2.43 (-0.21 bps), 12 Jan 2023
· US 10-year treasury yield: 3.43 (-11.00 bps), 12 Jan 2023
- U.S. CPI fell 0.1% on month in December; annual inflation slowed to 6.5%
- Bank of Korea raises rates as markets see end of tightening
- Argentina's inflation rate at 95%, highest since 1991
- Dollar wobbles as U.S. inflation fuels hopes of slower Fed rate path
U.S. CPI fell 0.1% on month in December; annual inflation slowed to 6.5% The headline rate of inflation in the U.S. fell to its lowest since late 2021 in December, encouraging hopes that the Federal Reserve will soon be able to stop raising interest rates. Official data showed the consumer price index fell 0.1% from November, bringing the annual change to 6.5%, down from 7.1% the previous month. The monthly drop in the index was below analysts' forecasts for no change, but the annual rate was in line with consensus. Inflation dynamics still look a little stronger once volatile elements such as food, energy, and auto sales are stripped out. The 'core' CPI rose another 0.3% last month, accelerating slightly from November and leaving the annual core rate up 5.7%. Markets appeared unconcerned by the fact that the drop in the CPI was due largely to gasoline, as pump prices tailed off dramatically toward the end of the year.
Bank of Korea raises rates as markets see end of tightening South Korea’s central bank raised its policy interest rate by 25 basis points on Friday, as expected, but suggested a possible downgrade of this year’s economic growth projection and dropped a reference to the need for more rate hikes. Those dovish comments came in a policy statement ahead of the governor’s news conference. Economists in a Reuters poll had predicted Friday’s rate increase would mark the end of a rate-hike cycle that the Bank of Korea’s began in late 2021. The Bank of Korea said its seven-member monetary policy board had decided to raise its policy interest rate to 3.50%, the highest since late 2008. “Going forward, domestic economic growth is expected to weaken, affected by the global economic slowdown and the increase in interest rates, and GDP (gross domestic product) growth for this year will be below the November forecast of 1.7%,” it said in the statement.
Argentina's inflation rate at 95%, highest since 1991 Argentina's annual inflation hit its highest rate in more than 30 years last month as prices almost doubled versus a year ago, official data released on Thursday showed, further eroding consumers' dwindling purchasing power. In December, consumer prices jumped 5.1% month-on-month, according to national statistics agency INDEC, while inflation in the 12 months through December reached 94.8% in the South American country's ailing economy. The annual rate marks the fastest clip of rising prices in more than three decades, or since 1991, according to INDEC. Argentina is battling one of the highest inflation rates in the world as soaring prices hamper growth and force shopkeepers to constantly update price tags.
Dollar wobbles as U.S. inflation fuels hopes of slower Fed rate path The 10-year government bond yield (interpolated) on the previous trading day was 2.43, -0.21 bps. The benchmark government bond yield (LB31DA) was 2.565, -1.5 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.43, -11.0 bps. USDTHB on the previous trading day closed around 33.38 Moving in a range of 33.06-33.15 this morning. USDTHB could be closed between 33.10-33.50 today. The U.S. dollar swayed on Friday, flirting with seven-month lows after a sharp dive overnight as data showed U.S. inflation was slowing, boosting hopes of the Federal Reserve taking its foot off an aggressive interest rate hike policy. The dollar index, which measures the U.S. currency against six others, rose 0.059% to 102.220 but was languishing around its lowest level since June. The euro was up 0.03% to $1.0849, having touched fresh nine-month high earlier in the session. Sterling was last trading at $1.221, up 0.08% on the day. U.S consumer prices surprisingly fell for the first time in more than 2-1/2 years in December, with Federal Reserve policymakers expressing their relief and paving the way for the central bank to slow the pace of monetary tightening.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
