- USDTHB: moving in the range 34.76-34.82 this morning supportive level at 34.70 resistance level at 34.95
· SET Index: 1,531.2 (+0.01%), 2 Jun 2023
· S&P 500 Index: 4,273.8 (-0.20%), 5 Jun 2023
· Thai 10-year government bond yield (interpolated): 2.51 (+1.10 bps), 2 Jun 2023
· US 10-year treasury yield: 3.69 (+0.00 bps), 5 Jun 2023
- US services sector softens, factory orders boosted by defense
- U.S. economy adds 339,000 jobs in May
- Japan's Q1 GDP growth seen revised up on strong capex
- Dollar falls after weak services data
US services sector softens, factory orders boosted by defense The U.S. services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Federal Reserve's fight against inflation. Meanwhile, factory orders rose for a second straight month in April, but aside from a jump in orders for national defense, overall manufacturing activity was soft, in keeping with private survey data showing the sector now in a prolonged downturn. The Institute for Supply Management (ISM) said on Monday its non-manufacturing PMI fell to 50.3 last month from 51.9 in April. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the non-manufacturing PMI would edge up to 52.2. Though the PMI remains above the 49.9 level, which the ISM says over time indicates growth in the overall economy, last month's slowdown heightened the risks of a recession.
U.S. economy adds 339,000 jobs in May U.S. employers unexpectedly increased hiring in May, although wage growth eased, in one of the final data points that Federal Reserve officials will have available as they mull over their next rate decision later this month. According to data from the Labor Department's Bureau of Labor Statistics on Friday, the world's largest economy added 339,000 jobs last month, climbing from an upwardly revised reading of 294,000 in April. Economists had seen the figure at 180,000. Meanwhile, the unemployment rate rose to 3.7% from 3.4% in April and average hourly earnings grew by 0.3% after advancing 0.4% month-on-month. On an annual basis, wage growth cooled slightly to 4.3%.
Japan's Q1 GDP growth seen revised up on strong capex Japan's economy likely grew more than initially estimated in the first three months of this year, thanks to solid investments by manufacturers, a Reuters poll showed. Revised real gross domestic product (GDP) data is expected to show the world's third-largest economy expanded at an annualized rate of 1.9% in the first quarter, higher than a preliminary reading of 1.6%, according to the poll of 18 economists. A forecast 1.3% increase in capital expenditure, larger than the provisional estimate for a 0.9% rise, would be the main driver of upgrade, analysts said. Ministry of Finance data on Thursday showed Japanese firms ramped up spending on plant and equipment in January-March at the fastest rate since 2015.
Dollar falls after weak services data The 10-year government bond yield (interpolated) on the previous trading day was 2.51, +1.10 bps. The benchmark government bond yield (LB31DA) was 2.51, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.69, +0.00 bps. USDTHB on the previous trading day closed around 34.59 Moving in a range of 34.76-34.82 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar fell on Monday on news that the U.S. services sector barely grew in May as new orders slowed, ending an initial rally sparked by strong jobs growth. The Institute for Supply Management (ISM) said its non-manufacturing PMI fell to 50.3 last month from 51.9 in April. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the non-manufacturing PMI edging up to 52.2. The dollar had risen after the better-than-expected jobs gains boosted expectations the Federal Reserve may continue hiking rates as inflation remains elevated.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
