- USDTHB: moving in the range 34.61-34.74 this morning supportive level at 34.60 resistance level at 34.80
· SET Index: 1,555.1 (+0.00%), 9 Jun 2023
· S&P 500 Index: 4,298.9 (+0.11%), 9 Jun 2023
· Thai 10-year government bond yield (interpolated): 2.58 (+0.36 bps), 9 Jun 2023
· US 10-year treasury yield: 3.75 (+2.00 bps), 9 Jun 2023
- ECB to hike rates in June and July to break sticky inflation
- Japan's wholesale inflation eases, goods close to consumers continue to rise
- Argentina inflation seen hitting 149% this year, up from previous poll
- Dollar gains before Fed meeting, inflation data
ECB to hike rates in June and July to break sticky inflation The European Central Bank will hike its key interest rates by 25 basis points on June 15 and again in July before pausing for the rest of the year as inflation remains sticky, according to a clear majority of economists polled by Reuters. After a combined 375 basis points of hikes over the past year, economic activity in the 20-member bloc has slowed, with Europe's biggest economic engine - Germany - and the euro zone as a whole falling into a winter recession. Still, both economies are expected to rebound this quarter and the euro zone to grow 0.2% in each quarter for the rest of the year, the poll showed. Price pressures and inflation expectations have moderated, but not by enough to deter the ECB from continuing its most aggressive tightening cycle on record.
Japan's wholesale inflation eases, goods close to consumers continue to rise Japan's wholesale inflation slowed for a fifth consecutive month in May because of sliding fuel and commodity prices, a sign cost-push pressure that has driven up consumer inflation may be subsiding. The data underscores the central bank's view that consumer inflation will slow in coming months as global commodity prices slide from last year's peak levels. The Bank of Japan (BOJ) is expected to maintain ultra-loose policy this week and stick with its forecast for a moderate economic recovery, as robust corporate and household spending cushion the blow from slowing overseas demand, sources have told Reuters. The corporate goods price index (CGPI), which measures the price companies charge each other for goods and services, rose 5.1% in May compared with a year earlier, BOJ data showed, slower than the median market forecast for a 5.5% gain.
Argentina inflation seen hitting 149% this year, up from previous poll Analysts polled by Argentina's central bank forecast annual inflation this year at 149%, above the 126% expected in the previous poll, according to the monthly survey released on Friday. For May, the analysts polled expect prices to have risen 9% in the month. Inflation in April was 8.4%, according to Argentina's national statistics agency. Argentina's economy, strained by a historic drought that has worsened an ongoing currency crisis, is expected to shrink 3% in 2023 from 2022, the survey found. Analysts see the weakened Argentine peso, currently officially valued at 245 pesos per dollar, ending this year at 408.68 pesos per dollar and 2024 at 917.54 pesos per dollar.
Dollar gains before Fed meeting, inflation data The 10-year government bond yield (interpolated) on the previous trading day was 2.58, +0.36 bps. The benchmark government bond yield (LB31DA) was 2.58, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.75, +2.00 bps. USDTHB on the previous trading day closed around 34.63 Moving in a range of 34.61-34.74 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar bounced off two-week lows on Friday as investors awaited inflation data and the Federal Reserve's interest rate decision next week for any new clues on how high the U.S. central bank is likely to hike rates. The Fed is expected to hold rates steady at its June 13-14 meeting but is likely to remain hawkish and indicate a probable hike in July as inflation stays above its 2% target. The Fed is expected to revise higher its "dot plot" of policymakers' rate expectations and inflation projections. Data due on Tuesday is expected to show headline inflation rose at an annual rate of 4.1% in May, while core prices gained 5.3%.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
