- USDTHB: moving in the range 33.58-33.63 this morning supportive level at 33.50 resistance level at 33.75
· SET Index: 1,569.6 (-0.31%), 10 May 2023
· S&P 500 Index: 4,137.6 (+0.45%), 10 May 2023
· Thai 10-year government bond yield (interpolated): 2.50 (+1.50 bps), 10 May 2023
· US 10-year treasury yield: 3.43 (-10.00 bps), 10 May 2023
- U.S. CPI rises by slower-than-expected 4.9% in April
- German exporters disappointed as China Q1 rebound passes them by
- Chinese CPI inflation worsens in April, PPI at COVID-era lows
- Dollar in holding pattern, inflation data provides little clarity on rates
U.S. CPI rises by slower-than-expected 4.9% in April U.S. inflation slowed marginally in April, while the gauge of core prices closely watched by the Federal Reserve decelerated slightly but remained stubbornly elevated. According to data from the Bureau of Labor Statistics (BLS) on Wednesday, the U.S. consumer price index in April rose 4.9% on an annualized basis. Economists had expected the number to hold steady at the 5% level registered in March. Meanwhile, the core reading, which strips out volatile items like food and energy, moved up by 5.5% year-on-year, easing slightly from 5.6% in March. On a month-on-month basis, both the headline inflation and the core figure increased by 0.4%, which the BLS said was due in part to an uptick in costs for shelter and used cars.
German exporters disappointed as China Q1 rebound passes them by German exports to China fell at the start of the year as business hopes for a revival following Beijing’s lifting of strict measures to control COVID-19 were not fulfilled. While total German exports increased by 7.4% from January to March to more than 398 billion euros ($438.12 billion), shipments to China fell by 12.0% year-on-year to 24.1 billion euros, according to preliminary estimates from the German statistics office. Since the Chinese government lifted COVID restrictions at the end of 2022, Chinese people are travelling again, going out and spending more on clothes. That helped its economy to grow strongly in the first quarter, with gross domestic product rising 4.5% compared with the same period of 2022.
Chinese CPI inflation worsens in April, PPI at COVID-era lows Chinese consumer inflation barely expanded in April as local spending saw a limited recovery, data showed on Thursday, while producer inflation hit a near three-year low as the manufacturing sector continued to struggle with slowing demand. China’s consumer price index rose at an annualized 0.1% in April, data from the National Bureau of Statistics showed. The reading was lower than expectations for a rise of 0.4%, and the prior month’s reading of 0.7%. Inflation fell 0.1% in April from the prior month, missing expectations that it would remain steady. The weak CPI reading indicates that consumer spending remained languid despite the lifting of anti-COVID restrictions earlier this year. Measures taken by the Chinese government to shore up domestic spending appear to have had little effect on inflation, as the economy reels from three years of lockdowns.
Dollar in holding pattern, inflation data provides little clarity on rates The 10-year government bond yield (interpolated) on the previous trading day was 2.50, +1.50 bps. The benchmark government bond yield (LB31DA) was 2.53, -3.00 bps. LB31DA could be between 2.20-2.70 Meantime, the latest closed US 10-year bond yields was 3.43, -10.00 bps. USDTHB on the previous trading day closed around 33.68 Moving in a range of 33.58-33.63 this morning. USDTHB could be closed between 33.20-33.80 today. The dollar remained stable against a basket of currencies on Wednesday as data showed inflation slowed slightly more than expected last month but gave traders little clarity on the U.S. monetary policy outlook. A U.S. Labor Department report on Wednesday showed the annual increase in consumer prices dipped below 5% in April for the first time in two years. An inflation measure closely watched by the Federal Reserve also subsided, which could provide incentive for the central bank to pause further interest rate hikes next month. But with inflation still above the Fed's 2% target, rates may need to stay high for some time to tame it. The dollar index in afternoon trading was at 101.48, up 0.1% after hitting a low of 101.21 earlier.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
